united republic of tanzania - iringadc.go.tz · communities and councils to improving people’s...

UNITED REPUBLIC OF TANZANIA

PUBLIC PROCUREMENT REGULATORY AUTHORITY

PROCUREMENT OPERATIONAL MANUAL

FOR LOCAL GOVERNMENT AUTHORITIES

Version 1.1

December 2016

PPF Tower, 8th Floor, Ohio Street/Garden Avenue, P.O. Box 49, Dar es Salaam; [email protected]; www.ppra.go.tz

mailto:[email protected]

Local Government Authorities’ Procurement Operational Manual (Version 1.1) i

FOREWORD __________________________________________________________________

Decentralization has been one of the major policy initiatives of the Government of

the United Republic of Tanzania. The most recent policy reform commenced around

two decades ago and was formulated in 1998 as Decentralisation-by-Devolution (D-

by-D). The policy has the main objective to empower citizens, devolve fiscal

resources, democratize state power and facilitate effective service delivery in our

communities and Councils to improving people’s welfare. It is also intended to

improve transparency and accountability in Local Governments, promote good

governance and participatory democracy.

Under the decentralization policy, a range of powers, responsibilities and functions

are transferred to Local Government Authorities. Besides the responsibility of

planning, mobilising, allocating and managing fiscal resources, the function of

procurement and contracts management was fully transferred to Local Governments

as entrenched in the Public Procurement Act (PPA) of 2004 and subsequent revisions

made under PPA 2011 and amended in 2016.

In the course of implementing public procurement reform and following

consultations with stakeholders, we have realized that many Local Government

Authorities (LGA) - which constitute around one-third of all Procuring Entities in

Tanzania- would require additional guidance in operational areas of Procurement

and Contract Management. This is related to the multi-sectoral organisation and

wide range of services provided by the LGAs at various levels (Council, Ward,

Village and Service Delivery Unit) under the Council governance system.

Against this background, the Authority has developed this Procurement Operational

Manual for Local Government Authorities. The aim is to guide LGA staff and

officials (i.e. job families) in the correct use and application of the public

procurement law, regulations, standards, procedures, processes, tools and systems.

The manual uses a practical, process management approach, which structures the

roles, responsibilities, tasks and outputs of LGA actors, bodies and committees (Job

Families) in line with the LGA procurement cycle, functions, outputs and outcome.

We are confident that this will improve the procurement compliance and

performance of the Councils, and ultimately attain Value-for-Money of LGA

procurement.

All Local Governments and stakeholders are encouraged to use the manual in their

work place. Besides in printed format, the PPRA has made the manual available

ii Local Government Authorities’ Procurement Operational Manual (Version 1.1)

through its e-platform in order to reach as many stakeholders as possible. The

manual should, however, be used together with the Constitution, the Public

Procurement Act and its Regulations, Local Government Finance Act, and any

legislation relevant to a particular subject or topic.

Finally, we wish to express our deep appreciations and gratitude to our partners,

stakeholder and collaborators in the invaluable assistance they gave the Authority in

developing and validating the manual. They comprised staff of selected Local

Government Authorities and Regional Secretariats, the Local Government Division

and Local Government Training Institute of the President’s Office - Regional

Administration & Local Government, Consultant as well as procurement experts

from the Authority and the Project Implementation Unit. The manual is one of the

main outputs of the Enhancement of Procurement Capacity of Local Government

Authorities project (EPC-LGAP), which was jointly implemented from 2013 to 2017

by the PPRA and the Belgian Development Agency (BTC) in partnership with the

President’s Office - Regional Government and Local Government (PO-RALG).

The Authority invites stakeholders to provide feedback on the use of the manual and

undertakes to provide any clarification where required to support capacity building

for improved procurement and contract management in the Local Governments.

Dr. Laurent M. Shirima

Chief Executive Officer

Public Procurement Regulatory Authority

Local Government Authorities’ Procurement Operational Manual (Version 1.1) iii

TABLE OF CONTENT __________________________________________________________________________________

FOREWORD ..................................................................................................................................... ii

TABLE OF CONTENT ...................................................................................................................... iii

ABBREVIATIONS ............................................................................................................................. vii

CHAPTER 1: OVERVIEW OF THE MANUAL ............................................................................. 1

1.1 Purpose and Application of the Manual.............................................................................. 1

1.2 Limitations of the Manual ..................................................................................................... 1

1.3 Review and Update of the Manual ....................................................................................... 1

1.4 Interpretation of Terms .......................................................................................................... 2

CHAPTER 2: PRINCIPLES, STANDARDS AND ESSENTIALS OF PUBLIC

PROCUREMENT ....................................................................................................... 3

2.1 Integrity .................................................................................................................................... 3

2.2 Competition ............................................................................................................................. 3

2.3 Accountability ......................................................................................................................... 4

2.4 Economy ................................................................................................................................... 4

2.5 Efficiency .................................................................................................................................. 4

2.6 Transparency ........................................................................................................................... 5

2.7 Value for Money ...................................................................................................................... 6

2.8 Equality of Opportunity to Tenderers ................................................................................. 7

2.9 Fairness of Treatment ............................................................................................................. 7

2.10 Essential Requirements of Public Procurement .................................................................. 8

2.10.1 Compatibility with National Laws ....................................................................................... 8

2.10.2 Conflict of Interest................................................................................................................... 8

2.10.3 Awarding Principles ............................................................................................................... 9

2.10.4 Use of Standard Bidding and Contract Documents ........................................................... 9

2.10.5 Availability of Funds ............................................................................................................ 10

CHAPTER 3: INSTITUTIONAL ARRANGEMENTS AND FUNCTIONALITY .................... 11

3.1 External Oversight Bodies ................................................................................................... 12

3.1.1 Public Procurement Regulatory Authority ....................................................................... 12

3.1.2 Attorney General ................................................................................................................... 13

3.1.3 President’s Office Regional Administration and Local Governments .......................... 13

3.1.4 Regional Administrative Secretariat .................................................................................. 14

3.2 Council Procurement Organs and Committees .................................................................. 14

3.2.1 Accounting Officer ................................................................................................................ 14

3.2.2 Council Tender Board .......................................................................................................... 15

3.2.3 Budget Approving Authority .............................................................................................. 16

3.2.4 Finance Committee ............................................................................................................... 16

3.2.5 Procurement Management Unit ......................................................................................... 16

3.2.6 User Department ................................................................................................................... 17

iv Local Government Authorities’ Procurement Operational Manual (Version 1.1)

3.2.7 Evaluation Committee .......................................................................................................... 18

3.2.8 Inspection and Acceptance Committee ............................................................................. 18

3.2.9 Internal Audit Unit ............................................................................................................... 18

3.2.10 Council Legal Unit ................................................................................................................ 18

3.2.11 Lower Local Governments .................................................................................................. 19

3.3 Independence of Powers and Responsibilities ................................................................. 19

3.3.1 Handling of Disagreements ................................................................................................. 19

3.4 Prohibition and Probity ........................................................................................................ 20

3.5 Delegation of Procurement Authority ............................................................................... 20

CHAPTER 4: PROCUREMENT PLANNING .............................................................................. 22

4.1 Rationale of Annual Procurement Plan ............................................................................. 22

4.2 Link between Annual Procurement Plan and Budget ..................................................... 23

4.2.1 Linkage with Medium Term Expenditure Framework ................................................... 23

4.3 Preparation of Annual Procurement Plan ......................................................................... 24

4.3.1 Identification of Needs ......................................................................................................... 24

4.3.2 Description of Inputs ............................................................................................................ 25

4.3.3 Situation and Risk Analysis (Identification of needs) ...................................................... 25

4.3.4 Categorization of Council Procurement Requirements................................................... 27

4.3.5 Aggregation of Requirements ............................................................................................. 28

4.3.6 Preparation of Procurement Packages ............................................................................... 28

4.3.7 Selection of Procurement Methods ..................................................................................... 29

4.3.8 Preparation of Procurement Schedules.............................................................................. 38

4.3.9 Approval of Annual Procurement Plan ............................................................................. 39

4.3.10 Submission of Annual Procurement Plan ......................................................................... 39

CHAPTER 5: PROCUREMENT PROCESS AND PROCEDURES ............................................ 40

5.1 Procurement Cycle ................................................................................................................ 40

5.2 Stages in the Procurement Process ..................................................................................... 41

5.2.1 Procurement Planning .......................................................................................................... 41

5.2.2 Defining Requirements ........................................................................................................ 41

5.2.3 Sourcing .................................................................................................................................. 42

5.2.4 Selection of Procurement Strategy ...................................................................................... 43

5.2.5 Preparation and Issuance of Tendering Document ......................................................... 43

5.2.6 Receipt and Opening of Tenders ........................................................................................ 46

5.2.7 Evaluation of Bids ................................................................................................................. 48

5.2.8 Vetting of Contracts .............................................................................................................. 52

5.2.9 Contract Management .......................................................................................................... 55

5.2.10 Procurement Record Keeping ............................................................................................. 58

5.2.11 Contract Closure and Review ............................................................................................. 60

CHAPTER 6: PROCEDURES FOR PROCUREMENT OF GOODS, WORKS AND NON-

CONSULTANCY SERVICES ................................................................................. 62

6.1 Technical Specifications ....................................................................................................... 62

Local Government Authorities’ Procurement Operational Manual (Version 1.1) v

6.2 Bidding Documents .............................................................................................................. 63

6.3 Notification and Advertisement of Tenders ..................................................................... 64

6.4 Bidding Process ..................................................................................................................... 65

CHAPTER 7: PROCEDURES FOR SELECTION AND EMPLOYMENT OF CONSULTANTS

.................................................................................................................................... 69

7.1 Selection and Employment Process of Consultants ......................................................... 69

7.1.1 Terms of Reference ............................................................................................................... 69

7.1.2 Invitation for Expressions of Interest ................................................................................. 70

7.1.3 Short Listing and Expressions of Interest .......................................................................... 70

7.1.4 Request for Proposals ........................................................................................................... 71

7.1.5 Selection Procedure .............................................................................................................. 71

7.1.6 Evaluation .............................................................................................................................. 72

CHAPTER 8: PROCEDURES FOR PROCUREMENT OF COMMON USE ITEMS AND

SERVICES .................................................................................................................. 79

8.1 Definition of Common Use Items and Services ................................................................ 79

8.2 Procedures for Procurement of Common Use Items and Services ................................ 80

8.2.1 Key Issues of Procurement of Common Use Items and Services ................................... 81

8.2.2 Obligations of Parties under Framework Agreement ..................................................... 82

CHAPTER 9: PROCUREMENT OF SERVICES FROM TEMESA ............................................. 84

9.1 Role of TEMESA .................................................................................................................... 84

9.2 Scope of TEMESA Services .................................................................................................. 85

9.2.1 Specific Role of TEMESA ..................................................................................................... 86

9.2.2 Specific Role of Private Garages ......................................................................................... 87

9.2.3 Specific Role of Councils ...................................................................................................... 87

9.2.4 Work Flow for Vehicle Services .......................................................................................... 87

CHAPTER 10: SECTOR SPECIFIC PROCUREMENT: ICT EQUIPMENT, MEDICINES &

MEDICAL SUPPLIES AND AGRICUTURAL INPUTS ..................................... 89

10.1 ICT Equipment ...................................................................................................................... 89

10.1.1 Characteristics of ICT Equipment ....................................................................................... 89

10.1.2 Identification of ICT Needs ................................................................................................. 89

10.1.3 Procurement Procedures for ICT ........................................................................................ 90

10.2 Medicines and Medical Supplies ........................................................................................ 90

10.2.1 Procurement Procedures for Medicines and Medical Supplies ..................................... 91

10.3 Agriculture Inputs ................................................................................................................ 92

10.3.1 Procurement Procedures for Agriculture Inputs .............................................................. 93

10.4 Education Requirements ...................................................................................................... 94

10.4.1 Procurement Procedures for Education Requirements ................................................... 95

10.5 Fishing Facilities .................................................................................................................... 96

vi Local Government Authorities’ Procurement Operational Manual (Version 1.1)

CHAPTER 11: DISPOSAL OF COUNCIL ASSETS BY TENDER ................................................ 97

11.1 Reasons for Disposal of Assets ............................................................................................ 97

11.2 Valuations of Council Assets ............................................................................................... 97

11.3 Tendering Proceedings and Disposal Process ................................................................ 100

11.3.1 Approval of Disposal and Disposal Plan......................................................................... 100

11.3.2 Methods of Disposal and Conditions for Use ................................................................. 100

11.3.3 Tendering Proceedings....................................................................................................... 101

CHAPTER 12: PROCUREMENT CONTRACT MANAGEMENT AND QUALITY

ASSURANCE .......................................................................................................... 110

12.1 Contract Management of Goods ....................................................................................... 111

12.1.1 Inspection and Acceptance of Goods ............................................................................... 111

12.2 Contract Management of Works ....................................................................................... 113

12.2.1 Contract Supervision .......................................................................................................... 114

12.2.2 Payment for Works ............................................................................................................. 114

12.3 Contract Management for Consultancy and Non-Consultancy Services ................... 115

12.3.1 Payment for Services .......................................................................................................... 116

12.4 Contract Performance ......................................................................................................... 116

12.5 Resolution of Disputes ....................................................................................................... 118

12.6 Contract Amendment ......................................................................................................... 119

12.7 Termination of Contract ..................................................................................................... 119

12.8 Contract Closure ................................................................................................................. 120

12.8.1 Actions for Contract Closure ............................................................................................. 120

CHAPTER 13: PROCUREMENT REPORTING, RECORDS, MONITORING AND

EVALUATION ....................................................................................................... 122

13.1 Procurement Reporting ...................................................................................................... 122

13.2 Procurement Monitoring and Evaluation ....................................................................... 122

13.3 Monitoring by the Council ................................................................................................ 123

13.4 Communication and Information ..................................................................................... 123

13.4.1 Procurement Management Information System ............................................................ 124

13.5 Procurement Record Management ................................................................................... 124

13.5.1 Record Management System ............................................................................................. 125

ANNEXES .................................................................................................................................. 129

Annex 1: Procedural Forms, Standard Bidding and Contract Documents .............................. 130

Annex 2: Bid Receipt Form ............................................................................................................. 131

Annex 2: Letter for Appointment of Contract Supervisor ......................................................... 132

Annex 3: Request for Approval of Contract Amendment ......................................................... 134

Annex 4: Sample Contract Completion Statement ...................................................................... 136

Annex 5. Checklist for Contract Closure ...................................................................................... 137

Annex 6. Changes as per Public Procurement (Amendment) Act of 2016 .............................. 140

Local Government Authorities’ Procurement Operational Manual (Version 1.1) vii

ABBREVIATIONS

___________________________________________________________________

AG Attorney General AO Accounting Officer APP BAA

Annual Procurement Plan Budget Approving Authority

BOQ Bill of Quantity BTC Belgium Development Agency CAG Controller and Auditor General CD Council Director CLO CMT

Council Legal Officer Council Management Team

CTB Council Tender Board CUIS EC EOI

Common Use Items and Services Evaluation Committee Expression of interest

FPC Finance and Planning Committee GN Government Notice GPN General Procurement Notice GPSA Government Procurement Services Agency HoD Head of Department IAC HLG

Inspection and Acceptance Committee Higher Local Government

ICB International Competitive Bidding ICT Information Communication Technology ITT Invitation to Tender LCS Least Cost Selection LGA Local Government Authority LLG Lower Local Government LPO Local Purchasing Order M&E Monitoring and Evaluation MSD MTEF

Medical Stores Department Medium Term Expenditure Framework

NCS PE

National Competitive Selection Procuring Entity

PMIS Procurement Management Information System PO-RALG President’s Office – Regional Administration and Local Government PMU Procurement Management Unit PPA Public Procurement Act PPAA Public Procurement Appeals Authority PPP Public Private Partnership PPR Public Procurement Regulations PPRA Public Procurement Regulatory Authority PSPTB QCBS

Procurement and Supplies Professional and Technicians Board Quality Cost Based Selection

viii Local Government Authorities’ Procurement Operational Manual (Version 1.1)

RAS Regional Administrative Secretary RS RFPs

Regional Secretariat Request For Proposal

SOR SOW SBD STD

Specification of Requirements Specification of Works Standard Bidding Document Standard Tender Document

TB Tender Board TDS Tender Data Sheet TOR Terms of Reference TEMESA UD

Tanzania Electrical, Mechanical and Electronic Engineering Agency User Department

VEO WEO

Village Executive Officer Ward Executive Officer

WDC Ward Development Committee

Local Government Authorities’ Procurement Operational Manual (Version 1.1) 1

CHAPTER 1: OVERVIEW OF THE MANUAL

1.1 Purpose and Application of the Manual

This manual which is cited as the Local Government Authorities (LGAs)

Procurement Operational Manual, has been prepared to ensure best practices in

procurement when procuring goods, works and services while at the same time

supporting LGAs operations and missions. This Manual governs the procurement of

all goods, services and works and guide all LGAs personnel involved in the

procurement process. The procurement processes set out in this manual have

reference to the salient provisions of the Procurement Act (PPA) No. 7 of 2011 as

Amended 2016 and its Public Procurement Regulations (PPR) of 2013 that should be

read together with this manual.

This manual has been prepared to address the following categories of procurement:

i) Procurement of Goods;

ii) Procurement of Works;

iii) Procurement of Non-Consultancy Services;

iv) Selection and Employment of Consultants; and

v) Disposal of Public Assets by Tender.

1.2 Limitations of the Manual

This manual shall not cover the following areas:

i) Procurement of used railway machinery, aircrafts and ships;

ii) Procedures for Conducting Electronic Procurement which will be provided

through the system developed by PPRA;

iii) Procedures for Procurement under Lower Local Government (LLG) for which

PPRA will issue guidelines; and

iv) Disposal of public assets by methods other than tender.

1.3 Review and Update of the Manual

This Procurement Manual will be updated by PPRA, and also in any of the following

special situations:

i) When existing public procurement legislation and respective LGAs legislation

are revised;

ii) Lessons learnt while conducting procurement activities; and

iii) Comments or suggestions for improvement have been received by PPRA.

2 Local Government Authorities’ Procurement Operational Manual (Version 1.1)

1.4 Interpretation of Terms

In this Manual, the interpretation of terms shall be as provided in the public

procurement legislation.


CHAPTER 2: PRINCIPLES, STANDARDS AND ESSENTIALS OF PUBLIC PROCUREMENT

Public procurement at the LGAs is guided by various principles and standards.

Public procurement proceedings shall be undertaken in a manner that maximises

integrity, competition, accountability, economy, efficiency, transparency, and value

for money. In achieving the best acceptable level of standards, LGAs has to ensure

they take into consideration of equality of opportunities to all tenderers, fairness of

treatment to all parties and the need to obtain best value for money in price, quality

and delivery.

These principles are intended to set the framework for guiding procurement

practitioners at the level of LGAs in managing public procurement proceedings. By

integrating these principles in public procurement, the outcome will always be in

line with requirements of the law.

2.1 Integrity

Integrity is when an individual exhibits probity in their actions. Probity means an

individual has strong moral principles and honesty and decency as character traits.

A person of integrity has a sense of honesty and truthfulness that is apparent in their

professional and personal conduct. Such a person adheres to commonly accepted

moral and ethical principles and is incorruptible. All personnel engaged in public

procurement must avoid any unethical behaviour as it reduces the reputational risk

of LGA and its public image.

2.2 Competition

Public procurement must be conducted in a manner that maximises competition. In

doing so, it must be conducted through open public bidding, except as otherwise

provided for under the public procurement legislation. A competitive bidding

process treats bidders equitably, creates a level playing field and provides fair

grounds for competition among themselves, thereby ensuring that no single bidder

significantly influences the outcome of the bidding. Competition among bidders will

urge them to offer more beneficial terms to the government. Hence, the alternative

methods of procurement must only be resorted to under highly exceptional

circumstances pursuant to the conditions laid down in procurement regulations.

Effective competition is achieved under the following conditions:

Sufficient number of independent prospective bidders;

Prospective bidders that act independently of each other;


Competition for the same business opportunity under the same conditions; and

Response to the procurement opportunity by a sufficient number of offers.

2.3 Accountability

Public office is a public trust, public officials should be made accountable for their

actions. For this purpose, LGAs staff should ensure that the public procurement

legislations and the prescribed procedures are faithfully complied with in

discharging their functions throughout the procurement process as well as during

the implementation of contracts. In order to achieve this, the responsibilities of each

official directly or indirectly involved in the procurement process must be clearly

assigned. Private parties who are involved with LGAs procurement should also be

held accountable for their actions.

LGAs personnel who take any action that is contrary to the public procurement or

LGAs finance legislations, guidelines, circulars, directives from the Authority or any

other competent body may personally be liable for the consequences of such action.

When LGAs is using public funds in the procurement, due care must be taken to

ensure funds are utilized solely for their intended purpose. Procurement

practitioners must therefore be particularly careful to ensure their actions, or those

undertaken by persons under their supervision, are in compliance with the legal and

regulatory frameworks.

2.4 Economy

The principle of economy requires careful management of available resources within

LGAs. It places emphasis on the need to manage public funds responsibly such that

prices paid for goods and services are reasonable and represent good value (in terms

of quality) for the amount of public funds expended on them. It holds the Council or

any public officers to ensure that the process takes advantage of competitive

tendering and market forces.

Everyone involved in the public procurement process or directly responsible for

facilitating the acquisition of goods and services with public funds, should avoid

fraud, waste and abuse of public resources, whether it be through inflated

specifications, paying unreasonably high prices for substandard goods, collusion

with bidders, or other irregular and unethical practices.

2.5 Efficiency

Council officers and members of Tender Boards shall, when undertaking or

approving procurement or disposal of public assets by tender, choose appropriate


procedures and cause the procurement or disposal of assets to be carried out

diligently and efficiently, so that the prices paid or goods received by the Council

represent the best value or net outcome that can reasonably be obtained for the

funds applied for or the assets disposed of.

2.6 Transparency

Transparency in public procurement means that information on the public

procurement process must be available to everyone: contractors, suppliers, Service

Providers and the public at large, unless there are valid and legal reasons to keep

certain information confidential.

When a public procurement requirement is published or made available to the

market by any means (electronically, press, internet portal, etc.), the announcement

must contain sufficient details for interested contractors, suppliers and Service

Providers to understand it in order to determine if they are qualified to compete;

most especially, the solicitation document must be made widely available at a

reasonable cost or even free of charge.

After reading the solicitation document, interested contractors, suppliers and Service

Providers should also be able to determine: the nature of the requirement and its

scope; closing date for submission of bids, proposals or information; evaluation and

selection criteria; details on how and where bids/proposals should be submitted;

number of copies, point of contact for additional information and response to

queries (clarifications); deadline for submission of queries; schedule of pre-

bid/proposal meeting and site visits, and any other pertinent details. Additionally, if

there is a change to the solicitation document, all stakeholders should be notified

through the same publications used for the initial notification, so that they can take

the necessary actions to comply as a result of the change

Transparency literally means that something is visible and evident to everyone and

that nothing is hidden. By being transparent during the procurement process, we

can demonstrate at any time to all stakeholders, internal and external, that fairness

has been applied. Transparency also means that all information on procurement

opportunities and processes leading to the award are clearly defined.

A transparent system must have clear rules and mechanisms to ensure compliance

with procurement legislation and guidelines. Examples of clear rules are unbiased

specifications; objective evaluation criteria; standard solicitation documents; equal

information to all parties; confidentiality of offers, etc.


Among other things, records are open, as appropriate, to inspection by auditors,

unsuccessful suppliers can be briefed on the strengths and weaknesses of their own

offers and contract information is disclosed publicly. The inclusion of sustainability

criteria at the very early stages of the procurement process encourages respect of this

principle. Transparency ensures that any deviations from fair and equal treatment

are detected very early in the process, making such deviations less likely and thus

protecting the integrity of the process and the interests of the organization.

2.7 Value for Money

Value for money means the maximum benefit from goods, works or services

procured with the resources available worth the cost incurred. The purpose of public

procurement is to obtain the best value for money and to achieve this it is important

to consider, among other factors, the optimum combination of life cycle costing (i.e.

acquisition cost, cost of maintenance and running costs, disposal cost) of a purchase

and its fitness for purpose (i.e. quality and ability to meet the contracting authority’s

requirements).

In order to obtain best value for money, procurement practitioners must ensure to:

a. Maximize competition;

b. Keep the procurement process simple e.g., good planning and clear

specifications and minimize financial risk, e.g. thorough background checks

on capacity (technical and financial) of bidders;

c. Carefully establish the evaluation criteria (in order to select the offer with the

highest expectation to meet partners’ needs in accordance with the evaluation

parameters set forth in the tender documents);

d. Consider all costs, e.g. life cycle costs, transportation costs, installation costs,

maintenance costs, sustainable procurement considerations Documentation of

the procurement process);

e. Ensure, whenever possible, that social and environmental benefits are

optimized and adverse impacts are minimized;

f. Ensure impartial and comprehensive evaluation of offers in a timely manner;

and

g. Ensure selection of the contractor whose offer has the highest degree of

realism and whose performance is expected to best meet the specified

requirements at the lowest overall expense to the organization.

Value for Money is the difference between the total benefit derived from a good or a

service against its total cost, when assessed over the period the goods or services are

to be used.


VALUE FOR MONEY = TOTAL LIFETIME BENEFIT – TOTAL LIFETIME COST

Example:

Photocopy machine that requires replacement of Cartridge every 10th thousand

copy at say sh.200,000 compared to the one that requires replacement of the

component after every 50th thousand copy at sh.250,000 would be much more

expensive taking the TLCC even when the purchase price of the machine is less by

Sh. 750,000 assuming the life span (possession by the Council) of 5 years.

2.8 Equality of Opportunity to Tenderers

The principle of equality of opportunity to all tenderers has an important place in

Tanzania and much effort has been applied to dealing with discrimination. Equality

should be integrated into all stages of the procurement process to assist the Council

to deliver better services that meet the needs of an increasingly diverse population.

It also recognises its statutory duty to promote equality of opportunity and eliminate

unlawful discrimination. The Council has to set the criteria for evaluating bids on

equal basis since the principle of equality requires that all the tenders comply with

clearly known criteria so as to ensure objective comparison of their tenders.

2.9 Fairness of Treatment

The principle of fairness of treatment to all parties is intended to showing

consideration and impartiality in all stages of the procurement process, especially

demonstrating equality in bid evaluations and subsequent award. In this regard, the

following shall be seen as crucial in the process:

Decision–making and actions must be unbiased, and no preferential treatment

should be extended to individuals or organizations;

All offers must be considered on the basis of their compliance with the

stipulations of the solicitation documents, and offers should not be rejected

for reasons other than those specifically stated in the solicitation documents

and related procurement rules;

A contract should only be signed with the supplier, contractor or Service

Provider whose offer is compliant and best responds to the objectives of the

requirement in terms of technical capability and price; and

Suppliers, Contractors or Service Providers should have the right to challenge

the procurement process whenever they feel they were unfairly treated or that

the Procuring Entity failed to carry out the procurement process in

accordance with the set rules.


2.10 Essential Requirements of Public Procurement

The essentials of effective and efficient Public procurement are consistent with the

basic principles that govern the use of all LGA funds.

2.10.1 Compatibility with National Laws

All procurements of LGAs shall be conducted as provided in:

Public Procurement Act No. 07 of 2011 as amended 2016;

Public Procurement Regulation GN 446 of 2013;

Local Government Finance Act (Cap 290) of 1982; and

LGAs TB Establishment and Proceedings GN 330 of 2014.

The Public Procurement Act prevails as primary legislation for procurement in

Local Government Authorities

Section 9(1) of PPA 2011 provides that one of the functions of the PPRA is to issue

guidelines under the Act. It is further provided under Section 106 of PPA 2011 that

the PPRA shall issue guidelines from time to time for the better carrying out of the

objectives or any functions under the Act. This manual is in line with the provision

ascertained above.

2.10.2 Conflict of Interest

Section 84(3) of PPA 2011 provides that, a Council shall not procure from a member

of its staff or a person who has direct influence on the decision of a Procuring Entity

acting in a private capacity, either alone or as a partner in a partnership or as an

officer of a company. For the purpose of this manual a person shall be considered,

as having indirectly a conflict of interest in a contract, proposed contract or other

matter if:

He/she or his/her nominee is a member of a company or other body with

which the contract was made or is proposed to be made or which has a direct

pecuniary interest in the other matter under consideration; or

He/she is a partner, or is in the employment of a person with whom the

contract was made or is proposed to be made or who has a direct pecuniary

interest in the other matter under consideration.

Conflict of Interest specified above shall not apply to membership of, or employment

under, any public body and a member of a company or other body shall not, by

reason only of his membership, be treated as having an interest in any contract,

proposed contract or other matter if he has no beneficial interest in any securities of

that company or other body.


In the case of married persons, the interest of one spouse shall, if known to the other,

be considered, for the purposes of Public Procurement Regulations of 2013, to be an

interest of the other.

2.10.3 Awarding Principles

Section 75 of PPA 2011 stipulates that, the Council Tender Board shall review the

evaluation and recommendation made by the Procurement Management Unit

(PMU) and may either:

Approve the recommendation and authorize acceptance of the tender and

award a contract in the form specified in the tender documents; or

Refuse to authorize recommendation for award of the tenders and refer the

evaluation to the Procurement Management Unit with an instruction to re-

evaluate the tenders or retendering or other action

The Council Tender Board is required to inform the Council Director of its award

decision within three working days of making the decision.

The Council Director shall, before issuing a notice of intention to award a contract,

submit the award decision to the Committee responsible for finance and planning,

for scrutiny, and where the Committee is dissatisfied with the decision of the Tender

Board, it shall request the Authority to conduct an investigation pursuant to section

33(3) of PPA 2011.

Where no complaints have been lodged the Council Director shall issue a notice of

acceptance to the successful tenderer.

Where a tender, offer or proposal has been accepted by the Council, the Council and

the person whose tender, offer or proposal has been accepted shall enter into a

formal contract for the supply of goods, provision of services or undertaking of

works.

2.10.4 Use of Standard Bidding and Contract Documents

Section 70(1) of PPA 2011 provides that, the Council shall use the appropriate

standard model tender documents specified in the Regulations for the procurement

in question.

Authorized versions of the standardized tendering and contracts documents,

regularly updated, for use by Procuring Entities are available from the website of the

Authority.


Regulations 168(1) of 2013 provides for the procurement procedures, specifications

and contract packaging to be adopted to reflect such interest or objectives where, in

the interest of project sustainability or to achieve certain specific social objectives of

the project to:

Call for the participation of local communities or farmers’ groups;

Increase the utilization of local know - how and locally manufactured

products; and

Employ labour intensive and other appropriate technologies.

2.10.5 Availability of Funds

Local Government Authorities shall ensure that funds are allocated or committed

before commencing procurement proceedings especially for “Large” projects

exceeding one year. For contracts whose funds are exclusively budgeted for during a

particular financial year, the contract can only be signed when funds are available.


CHAPTER 3: INSTITUTIONAL ARRANGEMENTS AND FUNCTIONALITY

This chapter discusses the institutional structure and arrangements of public

procurement in the Local Government Authorities. The chapter includes the

mandates and approval levels, roles and responsibilities of e oversight institutions as

well as the established organs and committees within LGA. This is in line with the

institutional arrangement of Procuring Entity in compliance with the provisions of

PPA 2011 as amended in 2016. Guidance is provided on functionality of the

procurement structure including the required independence of the organs and

committees in undertaking procurement tasks including decision-making, how to

handle disagreements and delegation of procurement authorities.

The institutional arrangement for public procurement in Tanzania are summarized

in figure 1.

Figure 1: Summary of Institutional Arrangements


The institutional arrangements of public procurement in a Council comprise the

External Oversight Bodies, including:

Public Procurement Regulatory Authority (PPRA);

President’s Office Regional Administration and Local Government / Regional

Secretariat (RS);

Public Procurement Appeals Authority (PPAA); and

Attorney General (AG).

Within the LGA the following actors, bodies and committees are involved in one

way or another in the procurement processes as per procurement legislation:

Budget Approving Authority which is the Full Council;

Finance and Planning Committee;

Accounting Officer (Council Director);

Council Tender Board;

Procurement Management Unit;

User Department;

Evaluation Committee;

Inspection and Acceptance Committee;

Internal Auditors; and

Legal Officer.

In their functioning the above institutions, organs and committee shall observe

independence of powers and responsibilities as provided in the public procurement

legislation. The following paragraphs provide various roles and responsibilities of

institutions involved in the LGA’s procurement process.

3.1 External Oversight Bodies

3.1.1 Public Procurement Regulatory Authority

The oversight functions of PPRA pursuant to Section 9 of the PPA of 2011 as

amended in 2016 provides that PPRA shall provide oversight services to all include

among others the following:

i) Advise Government, local government authorities and statutory bodies on

procurement principles and practices;

ii) Monitor and report on the performance of the public procurement systems in

the United Republic of Tanzania and advise on desirable changes;


iii) In collaboration with the Attorney General’s Chamber Prepare, update and

issue authorized versions of the standardized tendering documents,

procedural forms and any other attendant documents to procuring entities;

iv) Build capacity to Stakeholders involved in procurement issues;

v) Obtain price for standardized common use items from relevant bodies with a

view to ensure that they conform to the prevailing market prices.

vi) Determine , develop, introduce, maintain and update related system to

support public procurement by means of information and communication

technologies including the use of public electronic procurement;

vii) Administer and enforce compliance with the provisions of the Act,

regulations and guideline issued under the Act.

3.1.2 Attorney General

The PPA, 2011 assigns various roles to the Attorney General in oversight of

procurement contract, including:

i) Vetting of contracts above the thresholds specified in the regulations arising

out of the acceptance of a tender, offer or proposal under the PPA;

ii) Provide advice to the Legal Officer who seeks for an advice of the Attorney

General in respect of the contract required to be vetted by that Legal Officer;

iii) Receive copies of award letters and all contracts entered by Procuring

Entities; and

iv) Receive information on termination of contract for abandoning works or

services and take appropriate action.

3.1.3 President’s Office Regional Administration and Local Governments

It is the responsibilities of the President’s Office Regional Administration and Local

Governments (PO-RALG) to ensure that the procurement in LGAs is done in

compliance with the various acts, regulations, guidelines, including public

procurement legislation.

The roles of PO-RALG include amongst others the following:

i) Ensuring that LGAs are staffed with sufficient number of qualified personnel

in the area of procurement;

ii) Ensuring that LGAs comply with procurement procedures as provided by

laws;

iii) Ensuring capacity building to procurement staff and other staff with roles and

responsibilities in LGA procurement; and

iv) To take disciplinary actions to those who performs their procurement duties

contrary to requirements of law.


3.1.4 Regional Administrative Secretariat

The Regional Administrative Secretariat provides overall coordination of all LGAs’

procurement plans and supervision role on procurement implementation in the

region as prescribed in Local Government Financial Memorandum and other

guidelines issued by the Ministry responsible for Local Governments. The role of the

Regional Administrative Secretariat through the Local Government Authorities

Management Services Section (LGAMSS) is to provide expertise and service in

developing good governance in LGAs by performing the following activities:

i) Advice and facilitate proper use of public finances in LGAs;

ii) Build capacity and promote good governance in procurement; and

iii) Take part in routine inspections of LGA’s performance and conducting ad hoc

inspections.

3.2 Council Procurement Organs and Committees

3.2.1 Accounting Officer

The Accounting Officer (Council Director) shall have the overall responsibility for

the execution of the procurement processes in the LGAs in accordance with the

provisions of the PPA 2011, PPR 2013 and GN 330 for the Local Government

Authorities’ Tender Boards (Establishment and Proceedings) Regulations, 2014.

Roles and responsibilities of the Council Director include:

a) Establishing a Tender Board in accordance with the Act

b) Appointing the members of the Tender Board;

c) Causing to be established a Procurement Management Unit staffed to an

appropriate level;

d) Causing to be prepared Procurement Plan for the Council based on its Annual

Plan and Budget and submitting the same to the Full Council;

e) Causing to be prepared quarterly procurement reports submitting the same to

the Finance Committee for approval;

f) Appointing the evaluation committees;

g) Having satisfied himself that proper procedures have been followed,

communicating award decisions;

h) Certifying the availability of funds to support the procurement activities;

i) Signing contracts for the procurement activities,

j) Investigating complaints by suppliers, contractors or consultants;


k) Submitting a copy of complaints and reports of the finding to the PPRA;

Ensuring that the implementation of the awarded contract is in accordance

with the terms and conditions of the award; and

l) Responsible for the provision of periodic reports to PPRA through the

Procurement Management Information System (PMIS).

3.2.2 Council Tender Board

The Council Tender Board (CTB) shall be established in accordance with Section 31

of PPA 2011. Further, the composition and the method of appointment of the

members and the procedures to be followed by such a Tender Board are prescribed

under GN 330 the Local Government Authorities’ Tender Boards (Establishment and

Proceedings) Regulations, 2014.

Composition of Council Tender Board

The Council Tender Board shall comprise five members, who shall be appointed by

Council Director:

Chairman, who shall be a Head of Department in the Council, but not one

that frequently initiates procurement proceedings; and

Four other Heads of Department.

The Council Legal Officer or his representative shall attend all Tender Board

Meetings as advisor but shall not vote in any decision.

The Secretary of the Board shall be the Head of the Procurement Management

Unit in the Council and shall be appointed by the Accounting Officer.

The Accounting Officer is required to inform PPRA timely in writing on all CTB

appointments and/or changes in the CTB’s composition.

The Accounting Officer shall submit to the Finance Committee the names and

qualifications of the members of the Tender Board for ratification and approval.

The roles and responsibilities of CTB are provided in Section 33 of PPA 2011 read

together with Regulations 18 of GN 330 of 2014 as follows:

a) Adjudication of recommendations from the PMU and award of contracts;

b) Review of all applications for variations, addenda or amendments to ongoing

contracts;

c) Approval of tendering and contract documents;

d) Approval of procurement and disposal by tender procedures;


e) Ensuring that best practices in relation to procurement and disposal by tender

are strictly adhered by Council;

f) Compliance with the Public Procurement Act and Regulations thereof; and

g) Liaise directly with the PPRA on matters within its jurisdiction.

3.2.3 Budget Approving Authority

The Full Council is the Budget Approving Authority of a Local Government

Authority responsible for:

a) Reviewing and approving the Annual Procurement Plan based on its budget

and action plan;

b) Reviewing of quarterly procurement reports submitted by the Accounting

Officer;

c) Ensuring that the Council complies with the provisions of the Act and

regulations;

d) Ensuring that the PPRA’s recommendations with respect to established

wrongdoings in procurement activities are implemented; and

e) Disciplining of the staff implicated on wrongdoings.

3.2.4 Finance Committee

The Finance Committee is the standing committee of the Council responsible for

overseeing all financial matters and in this capacity responsible for:

a) Scrutinising award of contracts;

b) Review of the quarterly procurement reports submitted by the Council

Director;

c) Overseeing contract implementation through inspection of project works and

goods received;

d) Instructing the Council Director to carry out procurement or value for money

audits where not satisfied with explanations received;

e) Approve names of the members of the Tender Board; and

f) Oversight on public procurement matters.

3.2.5 Procurement Management Unit

Each Council is required to establish a Procurement Management Unit (PMU) in

accordance with Section 37 of PPA 2011. The roles and responsibilities of the PMU in

the Council include the following:

a) Manage all procurement and disposal of assets by tender activities of the

Council except approvals done by the Tender Board;


b) Support the functioning of the Tender Board;

c) Implement the decisions of the Tender Board;

d) Act as a secretariat to the Tender Board;

e) Plan the procurement and disposal by tender activities of the Council;

f) Check and prepare statements of requirements;

g) Prepare contract documents;

h) Issue approved contract documents;

i) Maintain and archive records of the procurement and disposal process;

j) Maintain a list or register of all contracts awarded;

k) Prepare and submit to the management meeting quarterly reports on the

implementation of the Annual Procurement Plan;

l) Co-ordinate the procurement and disposal activities of all the departments of

the Council;

m) Prepare monthly reports for the Tender Board; and

n) Prepare monthly reports for submission to PPRA through PMIS.

3.2.6 User Department

The User Departments of the Council are required to perform their functions

according to the provisions under PPA 2011 and GN 330 of 2014 including:

a) Liaise with and assist the PMU throughout Action Plans, Annual

Procurement Planning, procurement or disposal of assets by tender process

to the point of contract placement;

b) Initiate procurement and disposal by tender requirements and forward them

to the PMU;

c) Prepare technical inputs to statement of requirement (SOR) and or Terms of

Reference (ToR) for procurement requirements to the PMU;

d) Propose technical specifications to the PMU when necessary;

e) Participate in tender evaluation (Note: This overrides the contradiction found

in GN 330);

f) Certify for payments to suppliers, contractors or consultants;

g) Report any departure from the terms and conditions of an awarded contract

to the PMU;

h) Forward details of any required contract amendments to the PMU for action;

i) Maintain and archive records of contracts management.

There are several departments (staff) in the Council that besides being a User

Department, provide professional advice and services for procurement contracts

of User Departments like Education and Health, in particular Engineers. For

construction contract and IT officer(s) for ICT-related procurement.


3.2.7 Evaluation Committee

This is a Committee which is not permanent and is required to be formed for each

tender to be evaluated. PMU liaises with User Departments to obtain the names of

competent staff to form the evaluation team. The names of the recommended team

by PMU are submitted to the Council Director for approval. The team is notified of

their appointment. The evaluation team shall report to the PMU.

The number of members of the Evaluation Committee with appropriate level of

expertise and experience shall depend on the value and complexity of the

procurement (ranging from 3 to 5 or more) for Goods, Works and NCS while

evaluation of consultants’ proposals range from (5) five to (7) seven members. The

evaluation team shall be required to sign the Code of Ethics undertaking.

Members of the Evaluation Committee may be external to the Council where the

required skills or experience are not available within the Council.

3.2.8 Inspection and Acceptance Committee

The Council Director shall for each procurement contract for goods, including call-

off orders, appoint an Inspection and Acceptance Committee (IAC) tasked to inspect

the goods at the office of the Council, or at the site specified in the contract. Any

inspection conducted at any other site not specified in the contract shall be with a

prior consent of the Council Director. The committee is required to inspect and count

the goods in order to ascertain whether they are correct, complete and of required

quality in accordance with the agreement. A checklist containing items to inspected

and counted (where applicable) should be developed to ensure all parameters are

covered.

3.2.9 Internal Audit Unit

The Internal Auditor is responsible for independent assessment of the effectiveness

of procurement systems and processes in the Council. The Internal Auditor shall be

responsible for submission of quarterly procurement audit reports to the Council

Director, PPRA or any other authority as the case may be.

3.2.10 Council Legal Unit

The Council Legal Officers from the legal Unit are recognised by the law as being

responsible for all legal matters as advisors to the Accounting Officer. The Legal

Officers are also required to vet all procurement contracts of the Council below the

threshold set (currently Tsh 1.0 billion).


3.2.11 Lower Local Governments

The institutional arrangement for the Lower Level Local Government i.e. Villages,

Wards and Service Delivery Units shall be in accordance with the provisions

provided in the detailed procurement guidelines being developed for sub-Council

level institutions and units. The salient feature is that final responsibility remains

with the Council Director (Accounting Officer) whereas delegation always needs to

be done in writing.

Confidentiality

Any person having an official duty or being employed in the Council or

engaged as consultant to the Procuring Entity shall consider and deal with all

documents and information relating to the functions of the Council as

confidential.

3.3 Independence of Powers and Responsibilities

Each Body, Actor and Committee including the Council Director, CTB, PMU, User

Department and Evaluation Committee shall act independently in relation to their

respective functions and powers as provided in section 41 of PPA of 2011and its

amendments of 2016.

3.3.1 Handling of Disagreements

Handling of disagreements in the Councils between organs and committees is

provided for in PPA of 2011 and its Regulations of 2013. Disagreements that may

occur can be handled as indicated in table 3.1 below:

Table 3.1: Summary of Disagreements Handling Procedure

S/n Disagreement How to Handle the Disagreement Reference 1. Accounting Officer

and Tender Board AO to return decision for TB Review giving

reasons for disagreement;

Review by TB and issue a decision and re-submit to AO;

AO if not satisfied with decision reached by TB after review, shall refer the matter to PPRA for independent review giving reasons for disagreement

PPA 2011-S.36(4) and GN.446-R.51

2. Tender Board and PMU

TB to return recommendation to PMU giving reasons for disagreement;

Review by PMU and re-submit to Tender Board;

TB if not satisfied with re-submission, Chairman of TB to refer the matter to Accounting Officer for further review.

TB if not satisfied with outcome of review by the AO, shall refer the matter to PPRA for directives.

GN.446-R.52 and R.57(3)


S/n Disagreement How to Handle the Disagreement Reference 3. PMU and User

Department PMU and UD shall jointly consult two

members of TB for review of the matter;

If further disagreement, the matter shall be submitted to the TB for its formal Decision.

GN.446-R.53

4. PMU and Evaluation Committee

PMU to return evaluation report to EC for re-evaluation;

If PMU disagrees with re-evaluation, shall refer the matter to the TB for Decision.

GN.446-R.54

5 Finance Committee and AO

The Council Director shall before issuing a notice of intention to award a contract submit the award decision to the committee responsible for finance for scrutiny, and where the committee is dissatisfied with the decision shall request PPRA to conduct an investigation

GN.446-R.60(4) and S.33(3)

6 Overall responsibility

The Council Director shall be responsible for procurement decisions made by the Council.

S.36(5)

3.4 Prohibition and Probity

Probity and ethics requirement are set in GN. 446-R.7 and emphasized in GN. 330-

R.6 which requires:

Officers of the Procuring Entities (PE) to be scrupulous and honest in their

dealings with tenderers, members of the public and with the Procuring Entity

itself;

PEs to conduct procurement and disposal with complete probity and in a

manner that the Procuring Entity is respected and trusted as a client or

customer while maintaining good reputation with tenderers;

To reject a tender of a tenderer who gives or agrees to give directly or

indirectly to any public officer or other public authority, a gratuity in any

form, an offer of employment or any other thing of service or value, as an

inducement with respect to an act or omission or decision of or procedure

followed by the Procuring Entity in connection with that tender or proposal

or any other tender or proposal;

PEs not to make procurement to a member of staff or a person who has direct

influence on the decisions of the Procuring Entity acting in private capacity,

either alone or as a partner in a partnership or as an officer of a company; and

PEs not to include in any tender document any condition or specification such

as to favour any tenderer.

3.5 Delegation of Procurement Authority

Delegation of procurement authority in the Councils shall be as provided in PPA of

2011 and its Regulations of 2013, in particular the functions of the Tender Board and


PMU can only be delegated to a sub-division of a Council and they cannot be

delegated to an individual as stated in Regulation 48(1) of PPR 2013.

Figure 2: Summary of Delegation of Procurement Authority as per PPR 2013

ACCOUNTING OFFICER

TENDER BOARD PROCUREMENT MANAGEMENT UNIT

MEMBER OF STAFF

PROCUREMENT AGENT

SUB- DIVISION OF

A PE

DELEGATED TB

DELEGATED PMU

ANOTHER PE

ENTIRE PROCUREMENT

PARTIAL PROCUREMENT

Shall not delegate:

Establishment and Appoint-ment of members of TB;

Establishment of PMU;

Investigation of complaint by bidders;

Submission of reports of findings in respect of complaint to PPRA;

Disciplining of staff implicated of wrongdoings

Obligated to Submit Progress

reports;

Submit copies of minutes;

Seek advice from HQ

Must prepare and enter into an agreement and submit a copy to PPRA

May not contract out both procurement and contract management functions if there will be conflict of interest;

May not contract out TB and AO functions

DELEGATION OF PROCUREMENT AUTHORITY

DELEGATION

CONTRACTING OUT


CHAPTER 4: PROCUREMENT PLANNING

A corporate procurement plan is an overall projection of an organization’s future

procurement needs for a defined period. This chapter is intended to provide

guidance on how to handle the process of procurement planning for the LGA. It is

an effort to strengthen LGAs overall procurement capacity and achieve the intended

objectives of providing effective and efficient operational management services.

The procurement plan is always based on estimates of procurement activities to be

carried out in the next financial year. Some procurement needs cannot be anticipated

easily and plans may sometimes not be entirely accurate. User departments are

expected to provide best estimates based on available information at the time of

reporting. PMU shall be responsible for compiling the annual procurement plan,

analysing the provided data, and taking appropriate action.

The Annual Procurement Plan prepared by LGAs should be linked with the

Medium-Term Expenditure Framework (MTEF) / budget in order to have a

comprehensive Annual Procurement Plan (APP) describing roles and

responsibilities.; the basic steps in preparing the procurement plan should include

assessment of the procurement environment and associated risks; market analysis;

and aggregating procurement requirement; forming packages and finally selection

of procurement methods and preparation of the procurement schedules /templates;

as well as submission to relevant authorities for its approval.

4.1 Rationale of Annual Procurement Plan

The Annual Procurement Plan is a requirement under the PPA 2011 and its

regulations 2013 and as further provided in PPRA guidelines. It is an important tool

to provide the Council with continuity of inputs (procurements) to enable it to

achieve strategic objectives. It begins with setting of procurement targets and

activities by a Council in a manner that spreads them out in an annual calendar in

accordance with the availability of resources commensurate with needs.

Why Procurement Planning? Procurement planning is a vital part of the planned

activities of the Procuring Entity to align the budget of the Council and its execution.

PMU in collaboration with User Departments and /or Units, has the prime

responsibility for planning procurement of the LGA.

The Council is required to prepare its Annual Procurement Plan in a rational manner

and in particular: - avoid emergency procurement, aggregate its requirements both


within the Council and between Councils to obtain value for money and reduce

procurement costs.

Splitting of procurement to defeat the use of appropriate procurement methods

should be avoided unless such splitting is to enable wider participation of local

consultants, suppliers or contractors in which case the Authority shall determine

such an undertaking.

4.2 Link between Annual Procurement Plan and Budget

The Council is required to integrate its procurement budget with its expenditure

programme in which case the Council shall prepare its Annual Procurement Plan as

part of budget process and submit the plan to the Authority within seven days after

completion of the budget process as provided in the Regulations.

In Tanzania where the financial year runs from July to June, the process for planning

and budgeting is provided in the Plan and Budget Guidelines (PBGs) prepared

based on the requirements of Section 21 of the Budget Act No. 11 of 2015. The

process may begin as early as in the end of 2nd Quarter in order to catch the budget

cycle by March of the subsequent year.

4.2.1 Linkage with Medium Term Expenditure Framework

The process of procurement planning involves the analysis of the Council’s

requirements as detailed in the Medium Term Expenditure Frame work (MTEF). The

objective is to ensure that there is a common understanding of the procurement

requirements of all User Departments, Unit and sub-Council institutions/units that

would assist in developing a comprehensive Annual Procurement Plan.

The inputs of the activities listed in the MTEF are linked with their objectives and

targets to ascertain Procurement Categories. This is done by importing the


PLANREP and exporting same on EXEL sheet to enable further navigation &

manipulation with a view to integrate procurement budget with total expenditure

programme.

4.3 Preparation of Annual Procurement Plan

The process of preparation of Annual Procurement Plan involves the following key

steps: Identification of needs; Description of inputs; Situation analysis;

Categorization of requirement; Aggregation of requirements; Preparation of

procurement packages; Selection of procurement methods; Preparation of

procurement schedules; Presentation and approval; and Submission to PPRA.

Refer to Flow Chart No 1 below:

Flow Chart No 1: Preparation of Annual Procurement Plan

4.3.1 Identification of Needs

The procurement cycle starts with identification of procurement needs. The first step

in the planning process is to identify the desired outcomes and objectives of the

procurement.

Example:

Need for a borehole well fitted with lifting pump to serve a population of 250 Kaya

in the ward with the objective to improving life standards of the population but

above all to cut down time wasted for mothers fetching water from distant places

and loss of productivity. Once the requirement goes through the necessary budget

approval it has to be included in the APP of the Council.

Identification of Needs

Description of Inputs

Situation Analysis

Categorization of

Requirement

Preparation of Procurement

Schedules

Aggregation of Requirements (User/PMU)


Packages (User/PMU)

Selection of Procurement

Methods (PMU)

Identification of Needs (User)

Description of Inputs

(User/PMU)

Situation Analysis (PMU)

Categorization of

Requirement (User/PMU)


Schedules (PMU)

Presentation and Approval

(CMT/BAA)

Submission to

PPRA

(AO/PMU)


Each department within the Council identifies the required goods, services and

works that are needed to accomplish activities planned for achieving organization’s

objectives. This is concerned with redefining the actual requirements of the

individual departments in an organization, which will assist in categorizing the

procurement in the next phase of formulating strategy of procurement planning.

This step starts when the MTEF is being prepared and should not be confused with

the preparation of specifications.

4.3.2 Description of Inputs

The description of inputs provides important information about Council’s

procurement needs and strategies that must be considered during procurement

planning. All inputs for each activity should be clearly described in the MTEF

showing appropriate unit of measure and quantity. The major contribution of the

PMU is to provide guidance on the appropriate unit of measure and on availability

of materials or services needed from the market. The outcome of this process is to

assist in ascertaining given categories of procurement.

4.3.3 Situation and Risk Analysis (Identification of needs)

The Council should carry out procurement situation and risk analysis on its

requirements based on Council Strategic and Operational plan in relation to the

budget and cash flows. When analysing supply risk the following factors need to be

analysed for each commodity or category:

Nature of the supply market;

Probability of supply failure;

Strategic importance to the organization;

Impact on the organization of supply failure; and

Complexity of the procurement relationship.

The inputs of the activities listed in the MTEF are linked with the objectives and

targets to determine Procurement Category and timing of the delivery or

completion.

Steps in Procurement Situation Analysis

The following three phases are common in carrying out procurement situation

analysis:

i) Demand analysis;

ii) Market analysis; and

iii) Supplier analysis.


Demand Analysis

This involves analysis of Council related demand risks and other risks that are

associated with criticality of goods, works and services that are needed. This is done

by clarifying the objectives and the activities to confirm whether demand should be

met through contracting for goods, works or services.

After redefining the requirements the next step will be to analyse the required

goods, works and services according to the criticality, values and perishability. This

will be done using the Pareto principle (also known as the 80/20 rule) which holds

in most organizations. For obvious reasons, it is particularly important that plan for

top 20% or 50% of the materials be developed using careful detailed analyses.

The 80% or 50% of the materials that account for approximately 20% of the firm’s

expenditures are grouped by general classifications and a plan is made for each

group of similar items. These normally fall under operating costs and procurements

are normally through shopping methods where the threshold so allows.

Market Analysis

This involves analysing the market related risks. The PMU should make an attempt

to ascertain the state of the market for their requirement and inform the team. It may

be competitive or monopolistic, or it may be suspected that the market is controlled

by a cartel. This information will assist in planning the procurement. Market

research may be conducted using a variety of sources. One output of market

research is the determination of likely costs and the relation of those costs to the

budget. The objectives of supply market research include but not limited to the

following:

Supporting the creation of annual and individual procurement plans and

strategies through an understanding of how markets operate which will assist

in formulating packaging contracts options and deciding on methods of

procurement;

Clarifying where the leverage points and opportunities exist in the

marketplace; and

Visualising and understanding the marketplace from the economic operators’

perspective through a better understanding of their playing field, strengths,

weaknesses and opportunities.


Supplier Analysis

The PMU should make analysis of supplier related risks which involves analysis of

availability of Suppliers in the market (locally or international). It further provides a

means to evaluate the Procuring Entity in terms of how the Suppliers perceive them

in the market place and their willingness to provide services (to the particular LGA)

A general review of other potential suppliers, contractors and Service Providers in

additional to current suppliers are done to determine whether any particular

attractive possibilities should subsequently be investigated more closely.

4.3.4 Categorization of Council Procurement Requirements

From the situation analysis of each project components or departments, Procurement

categories are identified to enable grouping the organisational requirements into

various categories of procurement. Procurement can be categorized into the

following:

Works: construction, rehabilitation, maintenance and repair of buildings,

bridges, roads, etc;

Goods: materials, drugs, foodstuffs, vehicles, plant, etc;

Non-Consultancy Services: cleaning services, revenue collection, security

services and repair services, catering services, etc; and

Consultancy Services: studies for designs and provision of technical

assistance, training, engineering design and supervision etc.

Categorization must take into consideration the objectives, target and inputs to the

activities of the annual work plan for all project components or departments. These

should be discussed and agreed upon between the procurement unit and User

Departments or heads of project components.

Example: How to Determine the Procurement Category

The Head of Department XZ might include in the annual work plan the cost for

minor works for repair of door locks indicating the need to procure and fix locks for

100 doors at a cost Tsh. 20,000,000.00 and repair of toilets to replace the lids and

flash-buoyant at a cost of Tsh. 50,000,000.00. There are two or more options for

categorizing these requirements. The categories may either be contracts for goods

or works depending on the definition of works and goods according to the Act.

Clear analysis should be carried out with the User Department to clarify on the cost

elements of the work to be done indicating the total cost of goods and the total cost

of labour or works.


If the Council has the capacity to supervise the fixing of the locks in-house then

force account procurement method would be applied. The procurement could be

contracted for goods only if the organisation has technicians to fix and renovate the

toilets.

4.3.5 Aggregation of Requirements

After categorising the procurement requirements, the next phase of preparation of

procurement plan is to group goods, works or services of broadly similar nature

based on the market and suppliers analyses, which was done under phase one. The

law prohibits splitting of contracts with the view to avoid wider competition.

Aggregation is therefore done for the purpose of grouping contracts or tenders of a

size and type that will be likely to attract the most suppliers, contractors and Service

Providers and will not cause unreasonable delay in procurement process.

Every effort be made to avoid emergency procurements and make use of framework

contract wherever appropriate. This provides an efficient, cost effective and flexible

procurement of identified requirements continuously or repeatedly over a set period

of time as described under Section 49 (1)(a),(b) and (c) of PPA,2011.

4.3.6 Preparation of Procurement Packages

The process of packaging of procurements contracts will take into account the

economic and technical reasons to divide the project into homogeneous lots or

packages, which are large to foster maximum competition to obtain the most

economic contracts through national or international tenders.

It involves packaging of requirements according to similarities of items to be

procured, Size of each package should be appropriate to obtain maximum possible

competition from qualified bidders. The requirements is to get larger size of contract

to facilitate international competitive bidding (ICB) and to get economies of scales

The process further involves creating Lots within a single procurement proposal

with the aim to 1) reduce the number of procurement proposals and 2) facilitate

procurement of “grouped” items as a Lot.

The created Lots should include items of similar nature likely to be supplied by

dealers (or manufacturers) specializing in such items. If large quantities of a single

commodity are being procured, then packaging should take into consideration

market practices for that item, transportation costs, ship unloading capabilities,

storage capacities, inventory carrying costs, etc.


The PMU should decide, for each individual case, if it is better to include “supply of

materials” and “supply of equipment” within the scope of a Works Contract. Goods

and Works required to be delivered and/or constructed at different dates during the

project implementation period should be packaged separately.

The Council shall not divide its procurement into separate contracts for the purpose

of avoiding international or national competitive tendering or selection. Provisions

in the PPA, 2011 prohibit splitting of procurement to defeat the use of appropriate

procurement methods unless such splitting is to enable wider participation of local

consultants, suppliers or contractors as provided in the Act.

Packaging Options for Consultancy

Packaging should be done taking into account the nature of the consultancy services

assignment. However do not make the scope of the assignment too large or too

small. This should be guided by the nature and size of average consulting firm active

in the relevant field.

For Consultants (where firms are to be hired), as far as possible, define scope of

work such that payments are made for measurable outputs rather than a periodic

payment and front loading. However, in the case of time-based contracts, this may

be more difficult to achieve, but at least a part of the payments could be linked to

measurable outputs to be delivered.

For Consultants (where individuals are to be hired), the normal payment method

could be periodic payments, but part of the payment could also be linked to specific

outputs to deliverables.

4.3.7 Selection of Procurement Methods

The choice of procurement method is a critical issue to the success of procurement

process; the differences between the methods are significant in terms of formality,

level of competition, duration and complexity for bidders and the Council. The

choice should, therefore, be made with a view to maximize competition to the

greatest extent possible.

PPA 2011 as amended 2016 and Attendant Regulations stipulate the use of defined

procurement methods and the time required to be given to bidders for the various

methods. It is important for Councils to appreciate the time consideration of each

method and its impact on their respective operational and subsequent procurement

plan.


The different procurement methods available range from the most competitive ones

to those where there is no competition at all. The Regulations emphasize that open

tendering, which is the most competitive method and which accords opportunity to

any bidder with qualifications to participate, be a default procurement method.

Open Procurement Methods

According to Regulation 149 of GN.446 of 2013 the default Method is Open

Tendering – National and International. Other methods may be used as an exception

subject to the approval of Tender Board if competitive tendering is not considered to

be the most economic and efficient method of procurement and the nature and

estimated value of goods, works or services permit. The Open tendering methods

(International Competitive Tendering, National Competitive Tendering and

Restricted Tendering) are discussed in details in the Table 4.1.

PROCUREMENT METHODS INVOLVING NEGOTIATIONS

Apart from open tendering procedures GN. No. 446 of 2013 has separated other

methods of procurement into two categories, those involving negotiations and those

without negotiations. Procurement methods with negotiations include:

Two stage tendering –GN.446-R.154;

Request of Proposal with simultaneous negotiations – negotiations held with

all bidders –GN.446-R.155 to 156;

Request for Proposal with Consecutive Negotiations –GN.446-R.157;

Request for Proposals with competitive negotiations –GN.446-R.158;

Single source procurement method for goods or services –GN.446-R.159-160;

and

Single source procurement method for works – GN.446-R.161.

GN.446-R.153 gives conditions for use of two stage tendering and request for

proposal with simultaneous negotiations, consecutive negotiations and competitive

negotiations and they are summarized in Table 4.1.

PROCUREMENT METHODS WITHOUT NEGOTIATIONS

Procurement methods not involving negotiations include:

Request for proposals without negotiations – GN.446-R162;

Shopping – GN.446-R163 to 164;

Minor value procurement – GN.446-R165; and

These methods are also discussed in detail in Table 4.1.


Table 4.1: Thresholds for Methods of Procurement for Goods, Works and Non- Consultancy Services

Method of Tendering

Circumstances for Use

Goods Works Non-Consultancy Services

Disposal of Public Assets

OP

EN

PR

OC

UR

EM

EN

T M

ET

HO

DS

International competitive tendering PPR-R150

The need to attract maximum competition where capacity within the country is not available or goods and services are not available in the country. Margin of preference in favour of local firms applies.

No limit Procedure of Procurement is Covered in PPR-Part VII

National competitive tendering PPR-R151

The need to attract maximum competition where local capacity is available, the need to restrict payments to Tsh only, the need to minimize procurement transaction costs. Does not limit participation of foreign firms, however a margin of preference shall be applied in favour of local firms

Up to Tsh 1,000,000,000

Up to Tsh 5,000,000,000

Up to Tsh 1,000,000,000

Up to Tsh 5,000,000,000

Procedure of Procurement is Covered in PPR-Part VII. The procedure is the same with International Competitive Tendering save for advertisement requirements and time given to bidders to prepare and submit their tenders

Restricted tendering (PPR-R152)

Tenderer’s already prequalified,

Few specialized tenderer’s,

Emergency circumstances,

Need to achieve certain social objectives by involving the community,

Set aside contracts for purpose of capacity building of local firms.

No limit but must be justified Procedure: Except for no need of advertising and the time given to bidders, all requirements relating to international and national competitive tendering apply.


Method of Tendering




PR

OC

UR

EM

EN

T M

ET

HO

DS

IN

VO

LV

ING

NE

GO

TIA

TIO

NS

Two Stage Tendering PPR 153(1) & PPR-R154

Need to refine aspects of the description of subject matter of procurement and to formulate them with the detail required to meet its requirements;

A repeat tender process following no submission of tenders in previously invited tender

NO LIMIT IS GIVEN ON ITS APPLICATION Procedure: Obtain tenders in two stages- First stage proposal

without price on: technical, quality or performance characteristics of the subject of procurement; Contractual terms and conditions of supply; and professional and technical competence of the tenders

May engage in discussion with those who are responsive. Opportunity to be extended to all.

Revise set of terms and conditions of procurement in response to the tenderer submission and discussions held. Observe PPR-R154(7)

Invite responsive bidders to submit financial offers in response to revised set of terms and conditions of procurement.

Tenders wishing to withdraw in the second stage may do so without forfeiting their bid security.


Method of Tendering




PR

OC

UR

EM

EN

T M

ET

HO

DS

IN

VO

LV

ING

NE

GO

TIA

TIO

NS

Request for Proposals with Simultaneous Negotiations PPR 153(2)& PPR-R155 to 156

PE unable to formulate a detailed description of subject matter and therefore a need to involve tenderer’s through negotiation to obtain the most satisfactory solution to its procurement needs;

Tender for research, experiment or study of which quantities to be procured have no commercial viability to recover the costs;

Procurement for national defence or national security;

A repeat tender process following no submission of tenders in previously invited tender or rejection of all tenders; and

Technical nature of goods, works and services dictate the need to negotiate with tenderers

NO LIMIT IS GIVEN ON ITS APPLICATION Procedure: Invite tenders to submit their proposals. It may be

desirable to limit the number through pre-qualification or pre-selection – the need to have a clear rating criteria to arrive to a required number;

Observe PPR-R155(2) with regard to invitation to participate; PPR-R155(9) with regard to issuing a Request for Proposals to the pre-qualified or pre-selected providers; and PPR-R155(10) with regard to the contents of the Request of Proposals;

Simultaneous negotiations shall be conducted with tenderer’s that presented responsive proposals. The number of tenderer’s should be at least three to ensure competition. Conducted concurrently be the same representative of a PE.

Not allowed to modify the subject matter of procurement; any qualification or evaluations criterion; or minimum requirements with regard to qualifications of tenderer’s;

Invite tenderer’s remaining in the proceedings to present their best and final offer with respect to all aspects of their proposals.


Method of Tendering



Disposal of Public Assets Request for

Proposals with Consecutive Negotiations PPR 153(3) &PPR-R157

The need to consider separately the quality and technical aspects, and financial aspects of the proposal;

The need to establish acceptability of the financial terms and conditions of procurement contract by PE

NO LIMIT IS GIVEN ON ITS APPLICATION Procedure: Obtain proposals in the same way as Request for

Proposals without Negotiations. Observe PPR-R162(2) with regard to invitation to

participate; PPR-R162(4) with regard to issuing a Request for Proposals to the pre-qualified or pre-selected providers; and PPR-R162(5) with regard to the contents of the Request of Proposals;

Evaluate technical, quality and performance characteristic of a proposal and rank them in accordance with criteria and procedure for evaluating proposal set out in the request for Proposal document;

Invite the tenderer with the best ranking proposal for negotiations on financial aspects of its proposal;

Proceed to the next ranked if not possible to result into a procurement contract.

Not allowed to modify the subject matter of procurement; any qualification or evaluations criterion; or minimum requirements with regard to qualifications of tenderer’s

Request for Proposals with Competitive Negotiations PPR 153(4) & PPR- R158

emergency circumstances making it impractical to use open tendering proceedings;

Procurement for national defence or national security.

NO LIMIT IS GIVEN ON ITS APPLICATION Procedure; Bidders are invited to submit proposals which are evaluated and each invited separately to negotiate its proposals before they are invited to submit their Best and Final Offer (BAFO) which shall not be negotiated Successful offer shall be the offer that best meets the needs of a PE.


Method of Tendering




PR

OC

UR

EM

EN

T M

ET

HO

DS

IN

VO

LV

ING

NE

GO

TIA

TIO

NS

Single source procurement for goods and services (PPR-R159)

Only one supplier of Service Provider available,

emergency circumstances,

additional supplies required in a contract awarded through open tendering,

research, experiment or development basis where there is commercial viability,

national defence or national security,

continuity of functioning of existing equipment or Services;

Compatibility with existing equipment;

Standardization of Spare Parts.

No limit, but must be justified. Procedure: Except for no need of advertising and the time given to bidders, all requirement relating to international and national competitive tendering in terms of documentation apply.

Not applicable


Method of Tendering




PR

OC

UR

EM

EN

T M

ET

HO

DS

NO

T I

NV

OL

VIN

G N

EG

OT

IAT

ION

S

Request for Proposals Without Negotiations

Need to consider financial aspects of proposals separately and only after completion of examination of quality and technical aspects of the proposals.

NO LIMIT IS GIVEN ON ITS APPLICATION Procedure: More less the same as Quality Based selection for Consultancy Services Invite tenders to submit their

proposals. It may be desirable to limit the number through pre-qualification or pre-selection;

Observe PPR-R162(2) with regard to invitation to participate; PPR-R162(4) with regard to issuing a Request for Proposals to the pre-qualified or pre-selected providers; and PPR-R162(5) with regard to the contents of the Request of Proposals;

Evaluate technical, quality and performance characteristic of a proposal and rank them in accordance with criteria and procedure for evaluating proposal set out in the request for Proposal document;

Open financial proposals of those successful in their technical proposal;

Best proposal shall be one with best combined evaluation in terms of the price and the criteria for technical, quality and performance characteristics specified in the RFP;

Competitive quotations (Shopping) PPR –R163

For diversified goods offering no commercial interest for any single supplier to tender for them

For off the shelf or standard commodity specifications

Up to Tsh 120,000,000

Up to Tsh 200,000,000

Up to Tsh 100,000,000

Not applicable

Procedure Obtain quotations from at least three suppliers; Observe minimum time given to bidders as shown in

Eighth Schedule; and Observe procedure given in PPR-R164

Minor Value Procurement

Up to 10,000,000

Up to 20,000,000

Up to 10,000,000

Not applicable

Micro (value) Procurement

5,000,000 Not applicable

Not applicable

Not applicable


The minimum time for preparation and submission of pre-qualification documents

and tenders are summarized in Table 4.2.

Table 4.2: Minimum Time for Preparation and Submission of Prequalification Documents and Tenders for Tenderers

S/N Method of Procurement Period

(Calendar Days) PREQUALIFICATION STAGE

1 International competitive tendering 30

2 National competitive tendering 21

TENDERING STAGE

3 National competitive tendering 21

4 International competitive tendering 30

5 Restricted national competitive tendering 21

6 National shopping 4

7 International shopping 8

8 Where large works are involved 90

OTHER PROCUREMENT METHODS AND PROCEDURES

Force Account

Force account procurement method for works relates to Councils use of own staff,

hired labour or public or semi-public agencies or departments in the construction of

works- PPR-R167. One of the pre-requisites for the use of this method is the

availability of qualified personnel within the Council to carry out and/or supervise

the required works.

Community Participation

Provisions with regard to community participation in procurement have remained

the same in the amendment of 2016 as was contained in (PPR-R169) save for

procurement of the same using framework agreements if included in the list of

common use items.

Participation of Special Groups

The Council is required to set aside a given percentage value of procurement in

favour of special groups i.e. women, the disabled and the elderly pursuant to

amendments on PPA 2016. The regulations to this effect shall shed more light on its

operationalization.


Procurement of food stuffs for schools, training institutions, hospitals and prisons

Procurement of food stuffs for schools, training institutions, hospitals and prisons as

provided in (PPR-R170) shall be regulated by TFDA following which GPSA shall

play a major role for procurement of such items having obtained standards for such

goods from the relevant Ministries and estimated quantities from responsible

institutions that shall be required to place call-off orders based on established

framework contracts.

Emergency Procurement

Emergency procurement by definition cannot be covered by the Annual

Procurement Plan. Councils are cautioned to differentiate between Urgency and

Emergency.

The provision for handling of emergency procurement is covered under PPA 2011-

S.65 as well as R.63 - R67. Following the 2016 Amendments the Accounting Officer

is allowed to proceed with procurement without seeking approval from GPSA. A

waiver is given with regard to procurement limits, methods, tender processing

periods and advertisement. However, the tenders must be evaluated and award

must be approved by the Tender Board – PPA 2011-S.65 (6) as amended.

Emergency procurement shall not apply for common use items and services. When

a procurement was not included in the procurement plan, yet is reasonable and

justified, the Accounting Officer may approve re-allocation within his authority in

order to carry out such procurement within the limits of minor and micro

procurement values shown in 6th and 10th Schedule of the Regulations.

The Director shall be held accountable where the so called emergency procurement

is proved to be unnecessary and extravagant and was undertaken by lack of sight

and timely action. However contract entered under such circumstances, shall be

valid and the Accounting Officer shall be responsible for the payment of the price

involved (GN.446-R.67).

4.3.8 Preparation of Procurement Schedules

The preparation of the procurement schedules with target dates for each main task

in the procurement cycles calls for the PMU bear in mind the lead time required for

each procurement cycle and be guided by standard procurement processing time

schedules prescribed in the regulations.


The PPRA Website has templates for procurement plan schedules for use by public

procuring entities where schedules for external use will be published as part of the

General Procurement Notice (GPN) and reported through the Procurement

Management Information System (PMIS).

Separate schedules for OPERATING COSTS, TRAINING and WORKSHOPS

will be prepared for procurement using different approaches as will be directed

by the Council Director.

4.3.9 Approval of Annual Procurement Plan

The Budget Approving Authority (BAA) i.e. Full Council of the Local Government

Authority is responsible for review and approval of Annual Procurement Plan based

on Council budget and action plan-Ref. Section 33 (2) of PPA, 2011.

4.3.10 Submission of Annual Procurement Plan

The Accounting Officer in collaboration with the Head of the PMU is responsible for

submission of the Annual Procurement Plan to the PPRA. Submission should be

through the Procurement Management Information System (PMIS) save for LGAs

without ICT structure and connectivity to the internet.

It is a requirement to track and monitor the implementation of the Annual

Procurement Plan (refer to Chapter 13) and based on implementation

experience, review and update the APP as part of the mid-year budget review of

the Council.


CHAPTER 5: PROCUREMENT PROCESS AND PROCEDURES

This chapter provides guidance to the general procurement process and how to

effectively handle common procurement tasks in line with roles and responsibilities

in the LGA procurement cycle. The chapter also seeks to give highlight on tasks and

responsibilities for individual procurements during tendering. The procurement

process follows a pre-determined order of steps that can be explained here under as

procurement cycle that comprises main phases:

Pre-tendering: including needs assessment, planning and budgeting,

definition of requirements, determining priorities and choice of procedures;

Tendering: comprising the invitation to tender, evaluation and award; and

Post-tendering: including contract management, payment and closeout.

5.1 Procurement Cycle

The Procurement cycle (see figure 5.1) is the cyclical process of key steps in

procurement, from identification of a need through the process of selecting the

supplier, contract administration, contract closing and reviewing performance.

Figure 5.1 LGA Procurement Cycle

Cross-Cutting:

- Records

- Reports

- Accountability


5.2 Stages in the Procurement Process

The procurement process means the successive stages in the procurement cycle,

which includes planning, choice of procedures, measures to solicit offers from

tenderer’s, examination and evaluation of offers, award of contract and contract

management. The flow chart below gives an outline of the stages involved including

key players in the process.

Flow Chart: Stages in the Procurement Process

5.2.1 Procurement Planning

As pointed out elsewhere in this manual, each Council need to ensure that its

procurement is integrated with its expenditure programme. Following approval of

its Annual Procurement Plan, stakeholders (User Departments and PMU in

particular) are therefore duty bound to ensure that the Council observes the

approved Annual Procurement Plan and any unplanned procurement shall have to

get a prior written approval of the Accounting Officer.

5.2.2 Defining Requirements

In defining requirements the Council shall clearly describe what is needed by

collecting additional information, identifying appropriate solutions and obtain

specifications for goods and works, terms of reference (TOR) for consultancy

services, or statement of works (SOW) for non-consultancy services. These shall be

linked with the operation and action plans in order to harmonise the set objectives

and timing of deliverables.

Contract closure and

Review

(User/PMU/AO)

Operational Procurement

Planning (User/PMU)

Re-Defining Requirements (User/PMU)

Sourcing (PMU)

Selection of Procurement

Strategy (PMU/AO/TB/User

)

Preparation & Issuance of Solicitation Document

(PMU/User/TB)

Receipt and Opening of

Tenders (PMU/TB)

Evaluation

(EC)

Contract Review and Award (PMU/TB)

Contract Finalization &

Issuance

(PMU/AO/LO/AG)

Contract Management

(User/PMU/FPC)


It is at this stage that Specifications, TOR and SOW, which constitute the technical

basis for the solicitation and eventual evaluation, are developed i.e. they become the

“heart” around which the eventual contract is written and later administered.

Requirements should be defined with the aim of opening up competition, i.e. no use

of brand names or other unnecessary restrictions. Requirement definition should

identify the exact need (technical and quality), aiming at avoiding over-specifications

(as this may increase the cost) or under-specifications (where needs will not be met),

as well as the “when” it is needed (timing), in order to avoid progress delays or

losses for example due to extra storage and handling charges if delivered earlier than

required.

The flowchart below shows each of the stages in the requirement definition process

5.2.3 Sourcing

The term sourcing refers to a number of procurement practices, aimed at finding,

evaluating and engaging right and capable suppliers for acquiring

goods and services.

The Sourcing process, leading to identification and invitation of relevant suppliers,

ensures maximum competition, by allowing the most relevant and suitable

companies to compete. Sourcing also leads to a better understanding of the market.

This knowledge helps to:

Assist in a make or buy or lease decision;

Determine when to buy / establish realistic delivery schedules;

Review sole/single source justifications;

Identify price and non-price evaluation factors;

Identify special terms and conditions for the solicitation and resulting contract

that are customary in special markets; and

Establish realistic budgets, pricing arrangements and economic ordering

quantities.

Requirement analysis

(PMU/User)

Information gathering

(PMU)

Writing specifications (PMU/User)

Requisitioning (User)

https://en.wikipedia.org/wiki/Procurement

https://en.wikipedia.org/wiki/Supply_chain

https://en.wikipedia.org/wiki/Good_(economics)

https://en.wikipedia.org/wiki/Service_(economics)


5.2.4 Selection of Procurement Strategy

The process of identifying and selecting the appropriate procurement strategy can

best be described as a series of decisions, rather than sequential stages that need to

be followed in strict order to achieve the best procurement strategy.

Normally, the PMU would only complete the most relevant stages based on

requirements of the Act and Regulations, and the procurement officer’s experience.

To fully understand this process and the results, however, each of the logical stages

in the selection of a procurement strategy process is provided in the flowchart

below.

Flow Chart: Process of Selecting Procurement Strategy for Individual Procurement

Analysis of Requisition

The User Department of the Council is responsible for raising requisition that clearly

describe the need in terms of quantity/scope and required delivery date. This

document shall be authorised by Head of Department before submission to PMU for

further action including re-defining the need and whether it falls under APP. The

Council shall use procedural form no. 2 issued by PPRA.

5.2.5 Preparation and Issuance of Tendering Document

“Tender or solicitation document” means a written or electronic document or

request for proposal inviting tenderers or consultants to participate in procuring or

disposal by tender proceeding and includes document inviting potential tenderers

for pre-qualification.

The Procurement Management Unit is responsible for the preparation and issue of

the Tendering Documents. The Council must use the appropriate Standard Bidding

Analysis of the requisition

(PMU/User)

Selection of responsible Unit

(PMU/User)

Consideration of not-buy options

(PMU/User)

Consideration of indirect buy

options (PMU/User)

Choice of method (PMU/User)

Selecting type of competition

(PMU)

Decision type of Contract to be

signed (PMU/User/Legal

)


Documents (SBD) issued by PPRA, as this is a mandatory requirement for contracts

to be funded by the Government of Tanzania.

In deciding the deadline for tender submission the Council is required to comply

with the minimum Tendering periods given in the Regulations. Hence, the Council

shall provide Tenderers with sufficient time for obtaining and studying the

Tendering Document, preparing complete and responsive tenders and submitting

the tenders. Where a Tender Notice has been published, the Council must issue

Tendering Documents promptly to all Tenderers who request them and pay any

required fees. A record must be kept of the Tenderers to whom Tendering

Documents have been issued with appropriate Receipts being issued for all fees

paid.

Where the Tendering Document is issued to pre-qualified or short-listed Tenderers,

the documents must be issued to all Tenderers at the same time and must be issued

early enough to ensure compliance with the minimum Tendering period given in the

Regulations. A record must be kept of the issue of all Tendering documents.

Bidding documents should clearly define the scope of works, goods or services to be

supplied, the rights and obligations of the Council and of suppliers and contractors,

and the conditions to be met in order for a bid to be declared valid and responsive.

They should also set out fair and non - discriminatory criteria for selecting the

winning bid. The contents of the bidding documents are supposed to:

Encourage eligible potentially qualified firms to bid;

Not discriminate against any potential bidder; and

Provide a clear, objective means of evaluating the bids.

The detail and complexity of bidding documents vary according to the nature

and size of the procurement contract.

Tender documents shall be issued with the approval of the appropriate Tender

Board, which shall examine the draft tender documents before approving the issue

of the tender.

The flowchart (on next page) shows each of the stages in the process of preparation

and issuance of solicitation documents.


Preparation of Tendering Document

Call is made for the Council to use the original customized Standard Tendering

Document for each new Tendering Document. However once customized, the

original STD (or Standard Bidding Document – SBD) should not be amended in any

way.

When preparing a Tender Document, the first task is to electronically copy the

contents of the STD directory into a new electronic directory. It is recommended that

the new directory is given a name including the unique number from the

procurement reference number as shown in the procurement plan and a relevant

description. This new directory will be the working directory for the individual

Tendering Document and its files can be amended to suit the individual

requirement.

Rules for Preparing Tendering Documents

The STDs have been designed to require the minimum of input or changes to the

document so that a final Tendering Document can be produced with minimum time

and effort. Once the original STD has been copied to become the individual

Tendering Document, the relevant sections can be amended in accordance with the

rules specified below:

Most importantly the provisions in must be used with their text unchanged

Section II “Instructions to Tenderers” and

Section IV “General Conditions of Contract”

Any data or information that Sections II or IV require are to be included respectively in

Section III “Tender Data Sheet” and

Section V “Special Conditions of Contract.”

Data and information contained in the remaining Sections should be modified as follows:

Section VI Schedule of Requirements: This Section should be completed with details of the

requirement by the Procuring Entity.

Selection of Solicitation Documents

(PMU)

Compiling Contents of

S/Documents (PMU; UD)

Finalization of Solicitation Documents

(PMU)

Approval of Solicitation Documents

(CTB)

Issuance of Solicitation Documents

(PMU)

Clarifications/Bids Conferences (PMU, UD)

Amendments to solicitation documents

(PMU / UD)


Section VII Specifications: This section covers the description of goods and related services to be

supplied and the delivery. The Council should specify information and requirements

specific to the circumstances of the Procuring Entity.

Section VIII Forms of Tender: The “Form of Tender” and the “Form of Qualification Information”

in this Section should be completed by the Tenderer. No changes to these standard forms

should be made by the PE.

“Letter of Acceptance” should be filled in and sent to the successful Tenderer only after evaluation

of tenders has been completed, subject to any review by the appropriate approving

authorities.

“Price Schedule for Goods and Related Service” the price breakdown given in the sample Price

Schedules generally follows the usual breakdown requested for procurement of Goods in

order for the domestic preference procedure to be applied. It is essential that Tenderers

indicated their prices in the manner prescribed by the Price Schedules.

“Form of Qualification Information” should be filled in by Tenderers for purposes of post-

qualification or for verification of pre-qualification. This information will not be

incorporated in the Contract.

“Form of Contract” should be included in the Tendering Document, but details need not be

completed until after the contract award stage, when it will be signed by the Employer and

the successful Tenderer.

Section IX Security Forms: The “Tender Security” or “Tender Securing Declaration”, where

required, must be furnished by each Tenderer.

“Performance Security” and “Advance Payment Guarantee”, where required, should be furnished

by the successful Tenderer only.

“Manufacturer’s Authorization Form” Tenderers must submit, as part of their tenders,

Manufacturer’s Authorization Form(s) in the format provided in the STD for all items

specified in the Tender Data Sheet.

Section X Undertaking by Tenderer on Anti - Bribery Policy / Code of Conduct and Compliance

Program: This Section should be completed, signed and submitted together with the Tender by each

Tenderer without modifying the text.

Standard Bidding Documents

No changes should be made to the Instructions to Bidders and the General Conditions of

Contract.

If changes are necessary to address requirement and specific issues, they may be introduced

only through Bid Data Sheets or Special Conditions of Contract.

5.2.6 Receipt and Opening of Tenders

The Secretary of the Council Tender Board shall, on behalf of the board, receive and

keep the tenders in a locked tender box or in a secure office space; give each tenderer

a receipt showing the time and date that the tenders were received, particularly

when the envelopes containing the tenders are too large to be placed in the tender

box, or if no such box is available, all tenders that are not placed in a tender box shall

be kept unopened in a secure place until the deadline for opening of that tender.

The Secretary shall be responsible for holding securely envelopes or packages

containing any tenders which cannot be placed in a locked tender box. On receipt of


tenders, in case where the tender box is not used, the envelopes shall be recorded in

a special register in the order in which they arrive.

The registration number, the date and time of arrival shall be recorded on the

envelope and shall remain sealed and be kept in a safe place until they are opened.

Tenders received after the deadline for the submission of tenders stipulated in the

tender documents shall neither be opened nor be considered and shall be returned

unopened to the tenderer who submitted it: PPR-195 of 2013.

Submission and Receipt of Tenders

The Tenderer is fully responsible for tender preparation and its submission. The

PMU shall ensure the following:

Receive and record sealed tenders from Tenderers or make a Tender Box

available up to the deadline for tender submission;

Keep all tenders received secure until the time for tender opening; and

Close receipt of tendering at the precise date and time of the deadline and

ensure that late bids are not accepted for opening and should be returned

unopened.

Modification, Withdrawal or Substitution of Tenders

Unless otherwise stipulated in the solicitation documents, a tenderer may modify,

substitute or withdraw the tender prior to the deadline for the submission of tenders

without forfeiting its tender security. The modification or notice of withdrawal shall

be effective if it is received by the Council prior to the deadline for submission of

tenders.

Tender Opening

The Secretary of the Tender Board will chair the Tender Opening session bearing the

fact that the Council is responsible for the Tender Opening, which is a critical event

in the Tendering process. Council staff must be aware that inappropriate procedures

at Tender Opening are usually irreversible and may lead to cancellation of the

Tendering Process, with the consequent delays and waste of time and resources. The

Tender Opening must therefore follow the rules and procedures given in the

Regulations and the tender document.

Tender opening is a formal process of opening, reading and recording in writing all

bids received in response to the solicitation, at the date, time and place stipulated in

the solicitation documents. It is recommended that the tender opening takes place

immediately after the deadline for receipt of bids. The tender opening process


should normally be conducted by an authorized tender opening committee/official

panel as prescribed in the Regulations and Guidelines.

During Opening of Tenders, envelopes are opened one by one, and the tender

opening committee/official panel should check that the bids meet the procedural

requirements of the solicitation documents, for example, the tenderer’s names; the

tender prices and the total amount of each tender, written notifications of tender

modifications, substitution and withdrawals; any alternative tenders, if they have

been requested or permitted; any discounts; the presence of the requisite tender

security or tender securing declaration as the case may be; and such other details as

specified in the tender document. With a two envelope system, technical proposals

should be checked to ensure that no price information is included.

It should be noted that only “Discounts” read out and recorded during opening shall

be considered during the evaluation.

The checklist from the procedural forms issued by PPRA give sufficient

guideline in this regard.

The flowchart below shows the stages in the process of receipt and opening of

tenders.

5.2.7 Evaluation of Bids

The Evaluation Committee is responsible for the evaluation of all tenders received.

In appointing an Evaluation Committee (EC), it must be remembered that mistakes

committed at tender evaluation may later prompt complaints from Tenderers,

requiring re-evaluation of the tenders, with the consequent delays and waste of time

and resources. In observance of the Regulations and best practices, those involved

shall:

Receipt of Tenders (PMU)

Registration of Tenders (PMU)

Storage of Tenders (Tender

Box) (PMU)

Opening of Tenders

(PMU/Tenderers)

Formation of Evaluation Team

(PMU/AO)

Handover to Evaluation Team

(PMU)


Maintain the tender evaluation process strictly confidential;

Reject any attempts or pressures to distort the outcome of the evaluation,

including fraud and corruption;

Strictly apply only and all of the evaluation and qualification criteria specified

in the Tendering Documents to determine the Lowest Evaluated Tenderer or

Highest evaluated tender (Disposal/Revenue Collection) and to make a

recommendation for award of contract to the Tender Board; and

Conduct any negotiations recommended in the Evaluation Report and

approved by the CTB.

The Evaluation Report may recommend also that negotiations be held with the

recommended Tenderer.

Upon completion of the Tender Evaluation, and any negotiations, the Tender Board

shall be requested to make a Contract Award decision. The flowchart below shows

the stages in the evaluation process.

Preliminary Examination of Tenders

The objective of preliminary examination of tenders is to obtain substantially

responsive tenders, thus, the examination aims to identify and reject tenders that are

incomplete, invalid, or substantially non-responsive to the tendering documents and

therefore, are not to be considered further; since they may contain deficiencies that, if

accepted, would provide unfair advantages to the tenderer. Sound judgment must

be used: for example, simple omissions or mistakes arguably occasioned by human

error should not be grounds for rejection of the tender.

Example: if the tenderer is a joint venture, the joint venture agreement must be

submitted; if the tenderer is an agent, an authorization from the supplier or

manufacturer must be provided in addition to any documentation required of the

Receipt of Report/Record of

Opening (EC)

Preliminary Examination of

Offers (EC)

Detailed Evaluation of

Offers (EC)

Post Qualification

(EC)

Preparation of Evaluation

Report (EC)

Negotiations if applicable,

Negotiation Report (Negotiation

Team)


supplier or manufacturer itself. All copies of the tender should be compared with the

original and corrected accordingly, if necessary. Thereafter, the original should be

kept in a safe location, and only copies should be used in evaluation.

Eligibility of tenderers and tender securities should be confirmed to comply with the

requirements of the tendering documents. A substantially responsive tender is one

which conforms to all the terms, conditions, and specifications of the tendering

documents without material deviation or reservation or omission. A material

deviation or reservation is one that:

Affects in any substantial way the scope, quality or supply of goods,

execution of works or performance of services;

Limits in any substantial way, inconsistent with the bidding document, the

LGA’s rights or the tenderer’s obligations under the contract; or

If rectified would affect unfairly the competitive position of other tenderers

presenting substantially responsive bids.

The LGA may waive any minor informality, non-conformity or irregularity in a

tender which does not constitute a material deviation provided such waiver does not

prejudice or affect the relative ranking of any tenderer.

Detailed Evaluation of Offers

Only those tenders surviving preliminary examination need to be examined in this

phase. Bids should be checked carefully by the Evaluation Committee for arithmetic

errors in the bid form to ensure that stated quantities and prices are consistent. The

quantities should be the same as stated in the bidding document. The total bid price

for each item should be the product of the quantity and the quoted unit price. If

there is a discrepancy, the quoted unit price shall govern in the recalculation. Prices

spelled out in words shall take precedence over numeric quotations in case of

differences. The Council should correct all arithmetic errors and notify each bidder

of the detailed changes. The Bidder must accept such arithmetic corrections or its bid

will be rejected.

In order to compare bids fairly for all tenders, where bids have been in wide variety

of currencies the Evaluation Committee must convert all bids to a common currency

before they can be compared.

Detailed evaluation of bids shall strictly be based on the evaluation criteria specified

in the bidding document. Common evaluation factors include one or more of the

following quantification methods:


Pricing elements;

Delivery schedule;

Payment schedule deviation;

Operating and maintenance costs; and

Any other specific criteria as the LGA may consider appropriate

Post Qualification of Lowest Evaluated Bidder

Where pre-qualification has not occurred, the prospective award should be subjected

to post-qualification, the procedures for which are described in the Instructions to

Tenderers. If the lowest evaluated tenderer fails post-qualification, its tender should

be rejected, and the next ranked tenderer should then be subject to post-qualification

examination. If successful, this tenderer should receive the award. If not, the process

continues with the next lowest / highest ranked.

The rejection of a tender for reasons of qualification requires substantial justification,

which should be clearly documented in attachments to the report. A history of poor

performance may be considered a substantial justification.

Bid Evaluation Report

After the completion of the evaluation process the Evaluation Committee prepares

an evaluation report. This report covers five major stages of the evaluation process

namely; tender opening record, tabulation of valid offers, preliminary examination

of offers, detailed evaluation of offers and the need for negotiations if applicable. The

contents of the report should cover among others:

Key dates and steps in the bidding process;

Bid prices, corrections, discounts and currency conversions;

Additions, adjustments and price deviations;

Domestic preference if any;

Technical evaluations if any;

Post qualification results;

Names of bidders rejected and reasons for rejection of bids; and

The proposed contract award.

Approval by Council Tender Board

The PMU shall review the evaluation report as submitted by the Evaluation

Committee and recommend award of contract to the Council Tender Board for

approval or return same to the Evaluation team with comments. The Council Tender

Board may:


Approve the recommendation and authorize acceptance of the tender and

award a contract in the form specified in the tender documents; or

Refuse to authorize recommendation for award of the tenders and refer the

evaluation back to the Procurement Management Unit with the reasons for re-

evaluation of the tenders, re-tendering or other action.

Table 5.1: Summary of Evaluation Process for Goods, Works and Non-

Consultancy Services

Evaluation Stage Responsible Approval Deliverable

Formulation of Evaluation

Committee

PMU AO List of Members of EC

Receipts of tender Opening

minutes

PMU/EC CTB Tender Opening Minutes

Preliminary Examination EC On Process List of Substantial

Responsive Bids

Detailed Evaluation EC On Process List of Lowest/Highest

evaluated Bidders

Post Qualification EC On Process Final Evaluation report

for review

Review of Evaluation Report PMU CTB Award Recommendation

Scrutiny of the Award Decision

The Council Director shall, before issuing a notice of intention to award a contract,

submit the award decision to the Finance and Planning Committee, for scrutiny, and

where the Committee is dissatisfied with the decision of the Tender Board, it shall

request the Authority to conduct an investigation pursuant to section 33(3) of the

PPA of 2011.

Notification of Intention to Award Contract

Where the Committee responsible for Finance and Planning is satisfied with the

award decision the Council Director shall issue a notification of intention to award

the contract. The letter of intension to award is sent to all bidders who participated

in the tender in question by giving fourteen (14) days to lodge their complaints if

any. Where no complaints have been lodged pursuant to subsection (3) the AO shall

issue a notice of acceptance to the successful tenderer.

5.2.8 Vetting of Contracts

After the period of intention to award has been completed and no complaint has

been received, contract shall undergo vetting by Council Legal Officer when the

value of the contract does not exceed one billion Tanzanian Shillings. When the


contract is equal to or above one billion the contract is sent to AGs’ office for vetting

before the contract is signed by the parties.

The Council Director shall, within three (3) working days after being notified by the

Tender Board of its award decision, submit to the Attorney General the draft

contract with value stated above for vetting.

The Attorney General shall, within twenty one (21) working days upon receiving the

draft contract from the Council Director, vet the draft contract and provide

comments to the Accounting Officer, if any.

The Council Director shall, upon receiving the comments on the draft contract from

the Attorney General, incorporate them in the draft contract.

All procurement contract below the threshold shall be vetted by the Council

Legal Officer.

Complaints and Appeals

Any application for administrative review shall be submitted in writing or

electronically to the Council Director and a copy shall be served to PPRA within (14)

fourteen days of the tenderer becoming or should have become aware of the

circumstances giving rise to the complaint or dispute.

The requirements of application for administrative review shall not apply to

complaints submitted in response to the notice of intention to award the contract

issued to tenderers pursuant to section 60(3) of the PPA 2011. The application for

administrative review shall contain:

Details of the procurement or disposal requirements to which the complaint

relates;

Details of the provisions of the act, regulations or provisions that have been

breached or omitted;

An explanation of how the provisions of the Act, Regulations or provisions

have been breached or omitted, including the dates and name of the

responsible public officer, where known;

o documentary or other evidence supporting the complaint where available;

o remedies sought; and

o Any other information relevant to the complaint.


The Council Director shall not entertain a complaint or dispute or continue to do so

after the procurement or disposal contract has entered into force.

Administrative Review by Council Director

The Council Director shall, upon receipt of an application for administrative review:

Suspend the procurement or disposal proceedings of the tender in dispute,

until he delivers a written decision on the complaint; and

Notify all tenderer’s who participated in the tender, of the complaint and of

its substance within three working days of receipt of such application and the

tenderer’s who opt to join in the proceeding shall submit written responses

within three working days of receipt of such notification.

Upon receiving an application for review, Council Director shall institute an

investigation to consider:

The information and evidence contained in the application;

the information in the records kept by a council;

the information provided by other tenderer’s; and

Any other relevant information.

The investigation instituted in accordance with Public Procurement Regulations of

2013 may be conducted by a review panel appointed in accordance with section

96(2) of PPA 2011.

Review by the Public Procurement Appeals Authority

The Public Procurement Appeals Authority (PPAA) deals with complaints or

disputes which:

Are not settled within the specified period under regulation 106(6) of 2013;

Are not amicably settled by the Accounting Officer; or

Arise after the procurement contract has entered into force pursuant to

section 60(11) of the PPA 2011, shall be referred to the PPAA within fourteen

days from the date when the tenderer received the decision of the Council

Director, in case no decision is issued after the expiry of the time stipulated

under the regulations or when the tenderer became aware or ought to have

become aware of the circumstances giving rise to the complaint or dispute

pursuant to section 97 (3) of the PPA 2011.


Publication of Contracts

The Council is required to submit details of contract award to PPRA through PMIS

within fourteen (14) days from the date of award for publication in the Journal and

Tenders Portal. The contract award information shall be in a prescribed form issued

by the PPRA and shall contain the following:

Names of participants of the tender in question;

Read out tender price;

Reasons for those eliminated in the tender;

Name of the winner of the tender and the contract amount;

Date when the award was made; and

Contract period.

The Council Director shall be responsible for the requirement to furnish PPRA with

details as stated above for publication in the Journal and Tenders Portal.

Besides the above requirement, the Council is also required to:

o Publish awarded contracts to the wider public i.e. on Council Notice Boards.

o Provide the Authority with the list of LPOs and Micro Procurement (through

PMIS).

5.2.9 Contract Management

A Council shall be responsible for the effective management of any procurement of

goods, services or works for which it is undertaking and shall:

Monitor the costs and timely delivery of goods and services in the correct

quantities and to the quality specified in each contract;

Monitor the progress and timely completion of works in accordance with the

terms of each contract;

Take or initiate steps to correct or discipline deviations from observance of

contract condition; and

Ensure that the responsibilities imposed on it by the contract are fully

discharged

The purpose of contract management is to ensure that all parties to the contract fully

meet their respective obligations as efficiently and effectively as possible, delivering

the business and operational outputs required from the contract and providing value

for money. It also protects the rights of the parties and ensures required performance

when circumstances change.


In all situations, the PMU and contract managers/supervisors are responsible for

following up and ensuring that the actions of the supplier and the PE are in line with

the contractual responsibilities, that the contract is amended to reflect agreed

changes in circumstances, and that any claim or dispute is resolved amicably

according to the terms of the contract.

The stages of contract management are intended to ensure that the parties work

together to achieve the objectives of the contract. Contract management is based on

the idea that the contract is an agreement, a partnership with rights and obligations

that must be met by both sides to achieve the goal. Contract management is aimed

not at finding fault, but rather at identifying problems and finding solutions together

with all contracting parties involved.

The flowchart below shows the stages in the contract management process.

Amendments

Any amendment to the contract that may change the original terms and conditions

of such contract shall be prepared by the Procurement Management Unit in

consultation with the User Department before it is submitted to the Tender Board for

approval. A contract amendment shall not be issued to a tenderer prior to:

Obtaining approval from a Tender Board;

Commitment of the full amount of funding of the amended contract price

over the required period of the revised contract; and

Obtaining approval from other relevant bodies including the Attorney

General.

A contract amendment for additional quantities of the same items shall use the same

or lower unit prices as the original contract.

Signed Contract Document

(AO)

Contract Performance

Monitoring and Control (PM/UD)

Contract Change Management

(Variations etc.) (UD, PMU, TB)

Dispute Management & Resolution

(AO/LO)

Payments Financial Reports

(Finance/UD)

Contract Completion and

Closeout (PMU/UD)


A contract amendment shall not increase the total contract price by more than fifteen

percent of the original contract price without the approval of budget approving

authority.

Amendments after Signing

Once signed, the contract or written agreement shall not be altered, except when an

alteration is necessary for the benefit of the Council or when an alteration does not

prejudice the Council.

The contract extension which includes their mission or reduction of penalties in

favour of the tenderer shall be permitted only in the case of force majeure or default or

shortcoming on the part of the Council.

The proposed variations such as additions or deductions which are not incidental to

or arising out of the contract, and which alter the scope, extent or intention of the

contract shall, in every case, be referred to the appropriate Tender Board for

approval before instructions are issued to the tenderer.

The Council shall have no power to authorize additions beyond the scope of the

contract without having obtained prior written approval from the Paymaster

General or appropriate budgetary approving authority for additional financial

authority to meet the cost of such work.

Where the execution of contract has commenced, the cost increases involving all

changes which alter the scope, extent or intention of such contracts shall have the

prior written approval of the Tender Board.

For the purposes of the regulation, “changes in the scope of the contract” includes all

changes in the quantity or quality of goods to be supplied, services to be provided or

work to be performed by a tenderer with whom a contract has been entered into and

such changes shall generally be changes of a policy nature such as an increase in the

area of a building or finishing to a higher standard than originally specified.

Receipt, Delivery, Acceptance and Payment

Goods delivered shall be inspected, sampled and tested by the Council and they

shall not be accepted if they are below the standards stipulated in the contract.

Contracts shall contain a clause that the supplier shall be responsible for all costs and

expenses incurred due to a justified rejection of his goods on the ground that they

are below standards stipulated in the contract. Goods rejected shall be collected by


the supplier from the premises of the Council within seven working days from the

date of rejection of the goods.

Inspection and Acceptance Committee

The Council Director shall for each tender, including call-off orders, appoint an

Inspection and Acceptance Committee (IAC) which is required to:

Inspect the goods at the office of the Council or, user, or at the site specified in

the contract and any inspection at any other site shall be with a prior consent

in writing of the Council; and

Inspect and count the goods in order to ascertain whether they are correct and

complete in accordance with the agreement.

In case of a technical or scientific test or experiment, an expert or qualified person in

respect of the goods may be invited for consultation, or the goods may be sent to that

qualified person for test.

Where the Council Director considers necessary that any contracted work be

managed by a supervisor, he shall appoint a public officer under the jurisdiction of

the Council or an officer of the department or unit responsible for the works or a

consultant to be a supervisor.

The supervisor appointed shall manage the works of inspection committee and shall

prepare and submit to the Council Director Performance report on monthly basis or

within the period prescribed by the Council Director.

5.2.10 Procurement Record Keeping

Record of procurement and procurement contracts are important because they serve

as quality assurance to the Procuring Entity (Council) as well as audit trail of how

the process was carried out and managed. Procurement and contract records are the

evidence of all actions taken to award contracts, and of the results of the monitoring

and oversight of contract implementation. Procurement and contract records forms

the basis for internal and external audits, and are needed to determine compliance

with the procurement legal and institutional framework. Maintaining procurement

and contract records should be mandated by law given the use of public funds and

the need for transparency and accountability. Procurement records include all

documents relevant to the pre-tendering, tendering and contract administration

phases. It should be possible to reconstruct the entire procurement and contract

management processes from these records.


The Council is responsible for maintaining procurement and contract records of each

procurement requirement. The Council should develop the filing system and

maintains a complete record on the entire procurement and contract management

processes for each requirement. Although all records are maintained by the Council,

the entity responsible for contract administration should also maintain working

copies of relevant documents, while sending pertinent documents to the Council and

other entities (such as finance) as determined in the contract administration plan. In

order to eliminate the need for duplication of relevant procurement documents,

while making them available to relevant stakeholders, such documents could be

made available electronically, via an electronic document management system, on a

controlled access network, or management information.

The procurement record management system and procedures is guided by the

following principles and requirements:

Finance: Appropriate provision must be made in annual estimates of the Council for

sufficient funds to enable the records management unit to perform its functions

properly. The Procurement Management Unit is required to have its own budget

(sub-vote) and should have adequate allowance for the procurement sub-registry

which will be used for purchase of equipment, materials and office accommodation.

Staff: the Council should ensure adequate record management expertise in the

Procurement Management Unit, preferably by appointing a Record Management

Assistant to the PMU.

Accommodation for records: The records office should be in a location that is easily

accessible to action officers. Records office should be adequate in size to house both

the staff and records. There must be adequate space for both current and inactive

records.

Equipment and stationery: Sufficient and appropriate equipment should be

provided for the handling and storage of records. An adequate supply of suitable file

covers, and other stationery should be maintained. Computers and the necessary

software should also be provided.

Role of the Council Director in the Management of Procurement Records: The

Council Director through the Council Human Resource Officer should be

responsible for ensuring that an entity properly documents procurement

proceedings and manages records in accordance with the Regulations.


Role of the Head of PMU in Procurement Records Management: The head of the

PMU is responsible for the overall management of procurement records, under the

direction of the Accounting Officer. He/she should ensure that documented records

of procurement transactions are comprehensive, accurate, authentic, understandable

and usable. A PMU should assign in writing responsibility for the maintenance,

control, security and access to procurement records to a specific procurement officer.

Procurement records management officer: under the direction of the head of the

PMU should ensure that the records are authentic, accurate, reliable, safe and secure.

ICT officer/Systems Administrator: should ensure that any procurement records in

electronic format are accurate, available and legible.

The Role of the Procurement Records Manager: It should be the procurement

records manager’s responsibility to ensure that all the documents pertaining to a

specific procurement are placed in one file:

Documents in a procurement file should be placed in a logical order to reflect

the sequence of the transactions of the procurement action;

The documents will also need to be folio numbered, i.e. each paper will need

to be serially numbered, to protect them from unauthorized tampering or

removal of papers from a file. It is easy to detect removal of papers from a file

because of the evident break in folio numbering. If for some reasons the

documents cannot be accommodated in one file, subsidiary files linked with

the main file will be opened;

The procurement activity file will bear the tender or quotation number, item

name and the file reference number generated from the procurement file

scheme;

Files will be arranged and maintained according to the tender number, file

reference number and in financial year sequence; and

These files will need to be captured in the official procurement file scheme

and maintained in secure cabinets.

Role of User Department in the Management of Procurement Contracts: The User

Department shall maintain and archive records of contracts management.

5.2.11 Contract Closure and Review

The table (on next page) gives a summary of the key steps in the contract close out

process:


Table 5.2: Summary of contract close out process

Step Action

1 Review and confirm appropriate action taken according to contract close-out checklists.

2 Prepare final contract performance report (jointly by requisitioned and procurement officer), including lessons learned. Depending on the organization, this report may be purely internal or may be shared with the supplier for their knowledge and comment.

3 Prepare supplier assessment form and forward for appropriate action.

4 Issue final acceptance on the basis of the Requisitioners report.

5 Make final financial settlements.

6 Liquidate/return bonds and/or securities.

7 Record any residual obligations (warranties, etc.) and advise requisitioned of procedures.

8 Close- out contract file.

Councils are reminded on the importance to use for their tender proceedings

Procedural Forms and Standard Bidding and Contract Documents issued by the

PPRA: see Annex 1.


CHAPTER 6: PROCEDURES FOR PROCUREMENT OF GOODS, WORKS AND NON-CONSULTANCY SERVICES

This chapter details the procedures and requirements for the procurement of Goods,

Works and Non-Consultancy Services have similarities as opposed to the procedures

for Procurement of Consultancy Services. Apart from the general Statement of

Requirements (SOR), the Technical Specifications are the most critical aspect that

differentiates the procurement contracts of these three procurement categories.

6.1 Technical Specifications

Specific requirements relating to the goods or services being procured should be

clearly stated to give a correct and complete description of what is to be procured

and that allow for fair and open competition among those who may wish to

participate in the procurement proceedings. The Council may seek external experts’

assistance in preparing technical specifications when it does not have the expertise.

For goods User Department should define the requirement in terms of

description, quantity, quality, urgency, packing and marking requirements

and a detailed specification; and

Similarly, for non-consultant services the user or requesting department shall

prepare a description of services required, and a detailed specification of the

requirement including the period of the contract, quality standards and

service levels.

The technical requirements shall, where appropriate:

Relate to performance rather than to design or descriptive characteristics;

Be based on national, regional or international standards;

Not refer to a particular trademark, name, patent, design, type, producer or

Service Provider or to a specific origin unless:

o There is no other sufficiently precise or intelligible way of describing the

requirements and;

o The requirements allow equivalents to what is referred to.

Bill of Quantities for Works

The Bill of Quantities (BOQ) is the list of all main components of the project

(buildings, roads, sidewalks, lighting, equipment, etc) including estimated quantities

for each line item (soil movements/ excavations, structures, roofing, floors,


sanitation, etc) and information on the way it will be paid (e.g. lump sum or unit

price).

The preparation of the BOQ is the most difficult part because it should be complete

and exhaustive especially in contracts based on unit prices. Even though less detail

or fewer items are needed in lump sum contracts, such contracts require good

technical specifications and careful supervision.

6.2 Bidding Documents

The PMU shall prepare the bidding documents and incorporate the technical

specifications based on the standard bidding documents issued by PPRA. Once the

bidding document is ready it must be given to the Council Tender Board which will

review and grant approval. The bidding document should provide the following

information:

1) The specific requirements relating to the goods, works or services being

procured and the time limit for delivery or completion;

2) If works are being procured, relevant drawings and bills of quantities;

3) The general and specific conditions governing the contract, if the performance

security is provided;

4) The tender number assigned to the procurement proceedings by the

Procuring Entity;

5) Instructions for the preparation and submission of tenders including:

o The Bid form;

o The number of copies to be submitted with the original bid;

o Any bid security required, the form and amount of such security; d) any

proof evidencing the bidder’s qualifications.

o Statement where and when tenders shall be submitted,

o Statement where and when the tenders shall be opened;

6) Statement of whether those submitting tenders or their representatives shall

be allowed to attend the tender opening session;

7) Statement of the period during which tenders shall remain valid;

8) The procedures and criteria for bid evaluation and comparison;

9) A statement that the Council may cancel the bids at any time before the

signing of the contract; and

10) Anything else as may be provided for by the bidding document in accordance

with this PPA or public procurement regulations.

Eligibility: the standard bidding documents should provide the eligibility of both

bidders and the goods to be supplied. For example a bidder is not eligible if:


Currently blacklisted (debarred) by PPRA;

Has been prosecuted and found guilty in court, including any appeals process

on corruption charges;

Bankrupt;

Excluded in accordance with regional or international conventions; or

Has a conflict of interest

Delivery and Incoterms

The main purpose of Incoterms is to define responsibilities of seller and purchaser,

set rules for moving goods from one country to the other and determine point of

transfer of risk from Seller to Purchaser. In the bidding documents for goods, the

instruction to bidders shall specify or define the price to be quoted. Such price shall

be based on specific delivery terms in accordance with specified incoterms for goods

supplied from within the country and those supplied from outside the country.

The most commonly used when importing goods are CIF (Cost, Insurance and

Freight) and CIP (Cost and Insurance Paid). For Tanzania CIP is ideal because

freight and insurance is paid up to place of destination whereas CIF freight up to

port of discharge.

6.3 Notification and Advertisement of Tenders

All tender notices for national and international tenders shall first be advertised with

TPJ and Tender Portal together with at least one local newspaper and one

international newspaper in the case of international tendering/ selection, Ref. First

schedule of PPR 2013 shown in Table 6.1 below:

Method of procurement Mode of Advertisement

PRE-QUALIFICATION OR EXPRESSION OF v INTEREST

International competitive tendering/Selection

Journal and Tender Portal; PE website and/or Notice Board; and At least one local newspaper and one international newspaper

National competitive tendering/selection

Journal and Tender Portal; PE website and/or Notice Board; One local newspaper

TENDERING

International competitive tendering

Journal and Tender Portal; PE website and/or Notice Board; and At least one local newspaper and one international news paper

National competitive tendering Journal and Tender Portal; PE website and/or Notice Board; One local newspaper


6.4 Bidding Process

The process of submission and receipt of Tenders shall be the same as detailed in

Chapter 5 of this Manual with some additional procedures and requirements, which

are indicated in the below sections.

Bid Clarifications

The bidding document shall provide for the period during which bid clarifications

may be requested specifying time for receipt after which the clarification may be

ignored unless they draw attention to a serious flaw in the bidding documents. Any

response to a bidder must be communicated to all bidders who received the bidding

documents, but without identifying the bidder who requested the clarification.

Bidding Document Amendment

The period during which the bidding document can be amended will be defined in

the bidding documents. In principle at any time prior to the deadline for submission

of bids, the Procuring Entity may amend the bidding documents by issuing

addendum and any addendum issued shall be part of the Bidding Documents and

shall be communicated in writing to all who have obtained the Bidding Documents

legally.

Extension of Bid Closing Date

To give prospective bidders reasonable time in which to take an addendum or

clarifications into account in preparing their bids, the Procuring Entity may, if

necessary or at its discretion but in line with the law, extend the deadline for the

submission of bids. It is normally necessary to extend the bid closing date if

modification of bidding documents requires additional research or effort by bidders

to submit a responsive bid or request for a time extension is made by two or more

bidders; and unforeseen administrative issues which force a postponement of the

proposed bid opening.

Cancellation of Bidding Process

A bidding process may be cancelled at any time before the deadline for receipt of

bids by the Accounting Officer. Note that for donor-funded procurements, the donor

must be consulted for “a no objection” before any cancellation of the bidding

process.

Cancellation of Bidding after Bid Opening

The Council Tender Board may recommend cancelling bidding if:


No tender or proposal is responsive to the tender documents or request for

proposals;

No tender or proposal satisfies the criteria for the award of the contract as set

out in the tender documents or request for proposal;

The economic or technical data of the project have been altered;

Exceptional circumstances render normal performance of the contract

impossible;

Every tender or proposal received exceeds the budgetary resources available;

The tenders or proposals received contain serious irregularities resulting in

interference with the normal play of market forces;

Funds voted or earmarked for the procurement have been withheld,

suspended or have otherwise not been made available;

There has been no competition;

The goods or services are no longer required; or

The lowest evaluated bid is unacceptably higher than the budget (contract

cost estimates).

Evaluation and Award Recommendation

The Evaluation Committee shall prepare an evaluation report containing a summary

of the evaluation and comparison of bids and recommendation of award of contract

to the bidder with the lowest evaluated bid. The amount of the recommended

contract award is the bid price as submitted by the lowest evaluated bidder and

adjusted as described in the bidding documents for corrections, any discounts and

acceptance of alternative offers from the lowest evaluated responsive bidder.

In brief the evaluation report should ensure that:

Justification is provided for any decisions reached by the committee on

rejection of bidders ( if necessary provide copies of selected pages from bids)

and the recommendation for award of contract;

Inconsistencies between prices and modifications to prices read out at bid

opening are explained;

Substantial corrections for arithmetic errors which may affect the ranking of

bidders are explained;

Any additions, adjustments, and priced deviations that may affect the ranking

of bidders are explained;

Clarification correspondence between the Procuring Entity and the bidders

which result in major decision by the committee should be attached; and

Any separate evaluation or assessment report from a consultant, if one was

engaged for this purpose is attached.


The Evaluation Committee undertaking an evaluation shall be composed of at least

three members. Decisions of the committee shall be taken unanimously and all

members present have to sign the report.

Award of Contract and Contract Signing

The Council Director is required to send a copy of the award letter to the PPRA, the

Controller and Auditor General, the Attorney General and the Internal Auditor

General. The award shall be made within the period of tender validity to the

tenderer whose tender has been determined to be the lowest evaluated or the highest

evaluated, as the case may be, and meets the required financial and managerial

capability, legal capacity, experience and resources to carry out the contract

effectively.

Acceptance of Tender and Entry into Force of Procurement Contract

Where a tender is accepted by the Accounting Officer, the Council and the firm

whose tender is accepted shall enter into a formal contract for supply of goods,

provision of services or undertaking of works within twenty eight calendar days

after fulfilling all conditions prior to the signing of contract. A formal contract shall

be in a prescribed form and shall contain terms, conditions and provisions set out in

the tender document. A procurement contract shall enter into force when the two

parties have signed a formal contract.

Where a successful tenderer fails to sign a written contract as required or to provide

any required security for the performance of the contract, the Council shall, on the

recommendation of the Tender Board, select a competitive tender from among the

remaining tenders that are in force, subject to the right of the Council, to reject all

remaining tenders.

Advance Payment and Security

The advance payment shall not exceed twenty per cent (20 %) of the price of the

tender and shall be paid upon submission by the successful bidder to the Council of

an advance payment security equivalent to the advance itself. That security shall be

given by a bank or any authorized financial institution.

The successful bidder shall use the advance paid only in activities related to the

tender. If the successful bidder uses the entire advance or part of it in other activities

that are unrelated to the tender, the advance shall immediately be considered as a

debt which shall be paid by seizing the entire security or part of it.


The advance received by the successful bidder shall be recovered by deducting a

certain amount from submitted and approved invoices/certificates. The bidding

document shall determine the percentage to be deducted until the whole amount of

the advance is fully recovered.


CHAPTER 7: PROCEDURES FOR SELECTION AND EMPLOYMENT OF CONSULTANTS

This chapter introduced the procedures for selection and employment of

consultants, which involves several steps that are crucial for the selection of

appropriately qualified consultants to undertake an assignment successfully.

7.1 Selection and Employment Process of Consultants

The Council needs to undertake the following activities in the selection and

employment process of consultants:

Prepare terms of reference for the assignment

Prepare cost estimates for the assignment

Prepare the request for expression of interest or advertisement

Evaluate expressions of interest (shortlisting)

Prepare Request for Proposal

Issue Request for Proposal to shortlisted firms and receive proposals

Evaluate Technical and Financial Proposals

Negotiate and award a contract to the successful consultant

7.1.1 Terms of Reference

The Terms of Reference (TOR) is prepared by the User Department with assistance

of the PMU and must define clearly the objectives and scope of the assignment and

provide background information (including a list of existing relevant studies and

basic data) to enable the consultant to prepare a proposal. The TOR should:

Describe the background to the assignment;

State the objectives of the assignment including the scope of the services and

the duration of the assignment;

Detail list of the consultants’ duties and responsibilities;

Where applicable, the required inputs in terms of man days, months or years;


Detail outputs (deliverables), e.g.: designs, reports, recommendations, draft

laws etc.

Set the time periods for the deliverables;

List any services and surveys necessary to carry out the assignment;

Detail the services, facilities and counterpart staff to be provided by the

Council; and

Specify detailed requirements when transfer of knowledge or training is an

objective, to allow bidders to estimate the required resources.

7.1.2 Invitation for Expressions of Interest

The Council shall include, in the General Procurement Notice, a list of expected

consulting assignments which shall be updated as the Council considers necessary

for all outstanding procurement.

A Council shall then call for expressions of interest by publishing a notice in the

Journal and Tender Portal and a national and international newspaper of wide

circulation in order to establish a short list of bidders.

The Procurement Management Unit shall prepare the invitation for expression of

interest and table before the Tender Board for comments and approval. The

invitation for expression of interest shall be advertised by the Council in the Journal

and Tender Portal in accordance with the First Schedule of GN 446 of 2013.

In the advertisement, the Procuring Entity shall request the applicants to submit

adequate information for the Procuring Entity to make decision on the firm's

suitability and the advertisement shall not be complex as to discourage consultants

from expressing interest.

7.1.3 Short Listing and Expressions of Interest

The Council shall establish a shortlist comprising of bidders with capacity to

perform the required services. The shortlist shall be prepared for every new request

for proposals and shall comprise of five to ten firms at least three of which shall be

national firms. Where there are no qualified firms from Tanzania and for the

purposes of establishing the short list, the nationality of a firm shall be the country in

which the firm is registered or incorporated

A Tender Board may require the Procurement Management Unit to expand or

reduce a short list and where a Tender Board has approved a short list; a PMU

management unit shall not add or delete names without an approval of the Tender

Board.


The notice inviting expressions of interest shall set out the following:

The name and address of the Council;

Brief description of the services to be provided;

Qualification(s) necessary to be invited to submit a proposal;

Statement of where and when expression of interest shall be submitted.

Consultants shall be individuals or firms and Requests for proposals shall be

addressed to either individual consultants or firms, but not both under the same

tender.

7.1.4 Request for Proposals

The Request for Proposals (RFP) shall be sent to the short listed consultants, asking

them to confirm their participation. The RFP shall include a minimum of the

following information:

1) The name and address of the Procuring Entity;

2) The nature, time frame and location of the services to be provided, terms of

reference, required tasks and outputs;

3) The general and specific conditions to which the contract will be subject;

4) Instructions for the preparation and submission of proposals which shall

require that a proposal include a technical proposal and a financial proposal;

5) An explanation of where and when proposals shall be submitted;

6) The procedures and criteria to be used to evaluate and compare the proposals

including:

o The procedures and criteria for evaluating technical proposals which shall

provide the basis on which to decide on the responsive proposal. Care

should be taken to follow the standard request for proposals in defining

the criteria and procedures for evaluating technical proposals

o The procedures and criteria for evaluating the financial proposals

o Notice of conflict of interest restrictions and anti-fraud and corruption

rules, including the grounds for potential disqualifications from future

participation in public procurement ;

o Any other matters provided for in the procurement regulations.

7.1.5 Selection Procedure

The following procedures, method and criteria which must have been notified to

bidders in a request for proposals, shall be used detailed under:


1) Quality and cost-based selection (QCBS) shall be the method of default;

2) Quality based selection (QBS); applicable where quality is the paramount

factor;

3) Selection under a fixed budget may be applied when the assignment is simple

and can be precisely defined and when the budget is fixed;

4) Least cost selection may be applied when selecting consultants for

assignments of a standard and routine nature, where well established

practices and standards exist and in which the contract amount is small;

5) Selection based on consultant’s specific qualifications.

7.1.6 Evaluation

Technical Proposals

The Evaluation Committee shall evaluate each technical proposal on the basis of

criteria disclosed in the request for proposals including the following:

1) The consultant’s relevant experience for the assignment;

2) Quality of the methodology presented;

3) Qualifications of key personnel proposed for the assignment;

4) Transfer of knowledge, if required in the terms of reference; and

5) The extent of participation by nationals among key staff in case of

international tendering.

Indicative weights to be attached to the above criteria shall be provided in the issued

RFP in line with the regulations.

Financial Proposals

The financial proposals shall be opened and evaluated only after completion of the

technical proposal. When the quality and cost-based selection procedure is used,

only financial proposals of bidders who attained the minimum technical score shall

be opened.

The total score shall be obtained by adding the importance of quality and cost scores.

The quality and cost shall be established based on the complexity and the nature of

the assignment. The coefficient for quality and cost score to be used in determining

the winning proposal shall be specified in the request for proposals and in

accordance with the procurement regulations.

Similarly, the same shall apply to the fixed budget and least cost selection. Only

financial proposals whose technical proposals obtained the minimum technical score

prescribed shall be opened. Under the fixed budget method, proposals whose cost is


above the budget ceiling shall be rejected and the bidder whose proposal attained

the highest technical score shall be selected.

Under the least cost method, the bidder whose proposal attained the minimum

technical score and proposed the lowest cost shall be selected.

Under quality based selection, only the financial proposal of the bidder whose

technical proposal attained the highest score shall be opened.

Detailed procedures for evaluation of technical proposal shall be outlined in the

Guidelines on the Evaluation of Technical and Financial Proposals and Preparation

of Evaluation Reports issued by PPRA obtain from PPRA website

https://www.ppra.go.tz.

Negotiations with Selected Consultant

Negotiations with the selected consultant shall cover the terms of reference,

deliverable, progress reports, facilities to be provided by the Council and the

successful bidder’s financial proposal subject to the following:

Whenever price has been a factor, such as in the QCBS, fixed budget or least

cost selection procedures, consultant fees shall not be subject to negotiation.

Only reimbursable expenses may be negotiated;

If the negotiations fail to result in a procurement contract, the Council shall

proceed to the next ranked bidder and so on. Negotiations shall not be

simultaneously engaged with several consultants.

Detailed procedures for negotiation are outlined in the regulations under GN 4463.

Table 7.1: Steps for Quality and Cost Based Selection

Step No

Recruiting a Consultant using QCBS

Remarks

1 Terms of Reference

(TOR) for the assignment

when ready should be

prepared or checked by the

PMU to ensure the format

is correct

The TOR shall be prepared by knowledgeable people

(experts).

It shall provide relevant background information, define

clearly the objective, goals, and scope of the assignment and

tasks to be undertaken, reporting time schedules, staff

requirements and data & facilities to be provided by the

Council

2 Prepare Cost Estimate &

Budget (The cost estimate

shall be based on the

assessment of the resources

Costs shall be divided into two broad categories:

fee or remuneration, depending on type of contract used,

and


Step No


Remarks

needed to carry assignment:

staff time, logistical support,

and physical inputs)

Reimbursable are further divided into foreign and local costs.

The preparation of a cost estimate is essential for realistic

budgetary resources to be allocated.

3 Advertise for Expression of

Interest (EOI)

The Procurement Management Unit shall prepare the

invitation for expression of interest and table before the

Tender Board for comments and approval. The invitation for

expression of interest shall be advertised by the Council in

the Journal and Tender Portal.

4 Receive Consultants’ EOI on

the due date

Timing should allow for effective preparation and

submission of dossiers (EOI) depending on its complexity.

5 Review and Evaluate the

EOIs, Award points and

Rank them

A team evaluates the EOIs in accordance with evaluation

criteria derived from the request for expression of interest. A

minimum qualifying score should be agreed upon.

6 Select the Consultants who

met minimum set

requirements or minimum

qualifying score and rank

them

This is the list of qualified consultants from which you select

the shortlist of 5 to 10 consultants firms at least three of

which shall be national firms

7 The Evaluation Committee’s

EOI evaluation report

should include expert

advice received if any.

If the tender committee has engaged a consultant (expert) to

provide advice then any report produced by the expert

should become part of the evaluation report.

8 Prepare an appropriate RFP

in accordance with the

Standard Request for

Proposals (SRFP) issued by

PPRA

The contents of the Request for Proposals (RFP) are:

Letter of Invitation (LOI) should contain at least the 5-10

short-listed names

Information to Consultants including a data sheet (which

would include:

Evaluation Criteria,

Conditions of Contract, Forms

Terms of Reference,

Sample Contract.

Technical and financial proposal standard forms

Anti-bribery pledge

The RFP will indicate the deadline for submitting the

proposals as not less than 30 days after receipt of the RFP.

9 The RFP is to be issued to

the shortlisted consultants.

The short-list of Consultants will bid or compete for the

particular assignment.

10 Notify the short-listed

consultants of the RFP

issuance by mail, fax, e-

mail, etc.

If, for some reason, some decline to submit proposals, the

shortlist can be refreshed and date of submission extended,

if necessary

11 Arrange to receive the

Technical and Financial

Proposals on the appointed

day and time for evaluation

to commence.

The evaluation of the proposals shall be carried out in two

stages: first stages: first the quality and then the cost. The

Evaluation Committee would comprise of five or more

members. (To Safeguard the integrity of the process, the technical

and financial proposals are submitted in separate sealed envelopes)


Step No


Remarks

12 The technical envelopes

shall be opened as soon as

possible by the Tender

Committee after the closing

time for submission of

proposals.

Each technical proposal shall be evaluated on the basis of its

responsiveness to the TOR. A proposal shall be rejected at

this stage if it does not respond to important aspects of the

TOR or it fails to achieve the minimum technical score

specified in the RFP. The committee will evaluate the

responsive Technical proposals and award the deserving

points, in accordance with the Evaluation Criteria.

The relative strengths and weaknesses of each proposal shall

be picked to be included in the Evaluation Report. The

respective points from the TC members are then consolidated

as average marks.

13 The Council ( the Client)

shall Inform the consultants

who have, submitted

proposals the technical

points assigned to each

Consultant

It shall also notify those Consultants whose proposals did not

meet the minimum qualifying mark or were considered non-

responsive to the RFP and TOR that their financial proposals

will be returned unopened.

14 Under the QCBS (also FBS,

and LCS methods. the Client

shall promptly notify the

consultants who met the

minimum points, the date

time and place the public

opening of their Financial

proposals

The timing for the opening of the financial proposals shall

not be sooner than two weeks after the notification date

and the financial proposals shall be opened publicly in the

presence of representatives of the consultants who choose to

attend

15 Open the financial

proposals, in the presence of

the consultants

representatives who choose

to attend

The Procuring Entity will keep a register of the

representatives and prepare the minutes of the public

opening.

16 The Council shall then

review the financial

proposals. If there are

arithmetic errors, they shall

be corrected.

For the purpose of

comparing proposals, the

costs shall be converted to a

single currency selected by

the client currency or

fully convertible foreign

currency) as stated in the

RFP.

The Client shall make this

conversion by using the

selling (exchange) rates for

This includes checking computational errors and adding to

the initial price all items of the Technical proposals, whose

cost was omitted in the financial proposals.

The RFP shall specify the source of the exchange rate to be

used and the date of that exchange rate, provided that the

date shall not be earlier than four weeks prior to the deadline for

submission of proposals.


Step No


Remarks

those currencies quoted by

an official source

17 For QCBS the bidder who

submitted the least

Financial proposals is

assigned 100 points. The

points awarded to the

competitors are the

inversely proportional to

their prices.

Under QCBS, the total score of each bidder shall be obtained

by weighting the quality and cost scores and adding them;

ranking them to determine the successful bidder. If the

technical score is weighted 0.8, for example, the financial

score shall be weighted 0.2, such that the sum of the weights

is equal to 1.

18 Under the QCBS, the highest ranking firm in combined weight scores the successful bidder, and is invited to negotiate a contract

Note that: the QCBS method also applies to (i) Fixed Budget Selection (FBS),

and (ii) Least Cost Selection (LCS) methods

The financial proposals shall remain sealed until they are opened publicly

Table 7.2: Steps for Fixed Budget Selection (FBS)

Step

No

Recruiting a Consultant

using FBS

Remarks

1-16 Steps 1 through 16 of the FBS

method are the same as steps

1 through 16 of the QCBS and

LCS methods above.

Remarks on steps 1 through 16 of the FBS

method is the same as steps 1 through 16 of the QCBS and

LCS methods above

17 In the FBS method, identify

all the financial proposals

outside the fixed budget; they

will all be rejected. Then from

among the consultants whose

financial proposals were

within budget, select as the

successful bidder, the one

who offered the best, i.e. the

highest ranked technical

proposal, and invite him to

negotiate a contract.

In the FBS, the proposals at the set (fixed) level and within the

fixed budget are accepted and from among the bidders, the

one who offered the best technical proposal is selected. Here,

it is seen that the deciding factor becomes not the cost, but the

quality of the technical proposals.


Table 7.3: Steps for the Least Cost Selection (LCS)

Step

No


using LCS

Remarks

1-16 Steps 1 through 16 of the LCS

methods is the same as steps

1 through 16 of the QCBS

method above.

Remarks on steps 1 through 16 of the LCS method is the same

as steps 1 through 16 of the QCBS methods above

17 Under the LCS method, selected

as the successful bidder, the

consultant who offered the

least cost and invite him to

negotiate the contract.

It must be borne in mind that under LCS, all proposals that

met the minimum points compete only on “cost” afterwards.

The setting of the minimum points for the technical proposals,

which shall be stated in the RFP (Not less than 70%), is

therefore crucial to getting quality proposals.

Table 7.4: Steps for the Quality Based Selection (QBS)

Step

No


using QBS

Remarks

1-10 Steps 1 through 10 of the QBS

methods is the same as step 1

through 10 of QCBS method

Remarks on steps 1 through 16 of the QBS method is the same


13 If financial proposal was not

submitted before, the

Procuring Entity (the Client)

shall inform the Consultant

with the highest technical

score that his proposal has

been accepted and should

submit a financial proposal in

order to negotiate a contract.

It shall also notify those Consultants whose proposals did not

meet the minimum qualifying points or were considered non-

responsive to

14 Review the financial proposal

of the consultant with the

highest score. If there

technical are any arithmetical

errors they shall be corrected

This includes checking computational errors and adding to the

initial prices all items of the Technical proposals, whose cost

was omitted in the financial proposals.

15 The Council shall invite

the consultant for contract

negotiations. During contract

negotiations the Procuring

Entity and the consultant will

discuss technical proposal

issues, financial proposal

issues and the contract

Technical issues may include TOR comments, methodology,

availability of staff, work plan etc. Financial issues may

include reimbursable, taxation, advance remuneration,

payment etc. Contract issues may include payment terms,

commencement etc


Table 7.5: Steps for the Consultant Qualification Selection

Step

No

Recruiting a Consultant using

CQS

Remarks

1-4 Steps 1 through 4 of the CQS

methods is the same as steps

1 through 4 of the QCBS

method above.

Remarks on steps 1 through 4 of the CQS method is the same


5 Review and Evaluate the

EOIs, points and Rank them

The committee evaluates the EOIs in accordance with

evaluation criteria derived from the request for expression of

interest. A minimum qualifying score should be agreed upon.

6 Select the Consultant who

attains the highest score

from the ones who meet

minimum qualifying score

From the list of evaluated consultants which are ranked you

will select the qualified consultants. Reference checks should

be carried out on the selected consultant.

7 Prepare an appropriate RFP

in accordance with the

Standard Request for

Proposals (SRFP) issued by

PPRA and issue to the

selected consultant. Some

simple assignments may not

require a technical proposal

and only a financial proposal

is requested.

The contents of the Request for Proposals (RFP) are: (i) Letter

of Invitation (LOI) (ii) Information to Consultants (which

would include the Evaluation Criteria, Conditions of Contract,

etc.), (iii) The Terms of Reference, (iv) Sample Contract. Forms

deadline for submission of Financial Proposal only can be as

short as one week.

8 Receive the technical and

financial proposals. The

tender committee will

undertake the technical

proposal evaluation

The technical proposal shall be evaluated on the basis of its

responsiveness to the TOR. The proposal shall be rejected at

this stage if it does not respond to important aspects of the

TOR or it fails to achieve the minimum technical score

specified in the RFP. If proposal is rejected then an RFP will be

issued to the consultant with the second highest score.

9 If technical proposal

achieves more than the

minimum qualifying score,

then the financial proposal

will be opened and

reviewed.

This includes checking computational errors and adding to the

initial prices all items of the Technical proposals, whose cost

was omitted in the financial proposals.

10 Council shall invite the

consultant for contract

negotiations. During contract

negotiations the entity and

the consultant will discuss

technical proposal issues,

financial proposal issues and

the contract.

Technical issues may include TOR comments, methodology,

availability of staff, work plan etc. Financial issues may

include remuneration, reimbursable, taxation, advance

payment etc. Contract issues may include payment terms,

commencement


CHAPTER 8: PROCEDURES FOR PROCUREMENT OF COMMON USE ITEMS AND SERVICES

8.1 Definition of Common Use Items and Services

“Common Use Items and Services” means goods, works and services that are

required continuously or repeatedly over a set period of time and are common to

more than one Procuring Entity and are subject to common procurement.

Useful Features of Common Use Items:

1) Any item of materiel that is required for use by more than one entity;

2) Sometimes loosely used to denote any consumable item except repair parts or

other technical items;

3) Readily available off-shelf commercial items;

4) Items used by two or more entities of similar manufacture or fabrication that

may vary between the Services as to color or shape (as vehicles or Uniforms);

and

5) Any part or component that is required in the assembly of two or more compl

ete end-items.

Categories of Common Use Items and Services:

Class A: Stationery and Office Supplies

Class B: Office Equipment

Class C: Consumables and Accessories for office equipment

Class D: Furniture and Fittings

Class F: Cleaning Materials

Class H: Motor Vehicles Accessories

Class I: Tires and Tubes

Class J: Fuel and Lubricants

Class K: Food and Beverages

Class L: Uniforms, Sports Gears and Textile Materials

Class M: Laboratory Equipment

Class N: Equipment and Machinery

Class O: Kitchen Appliances

Class P: Tools and Equipment

Class Q: Fasteners

Class R: Building Materials and Hardware

Class T: Text Books

Class E: Non Consultancy Services


Non-Common Use Items and Services

“Non-Common Use Items” means raw materials, products, equipment and other

physical objects of every kind and description, whether in solid, liquid or gaseous

form, electricity, intangible asset and intellectual property, as well as services

incidental to the supply of the goods and Non-Consultancy Services. Examples of

Non-Common Use Items and Services include:

Plant and Machinery;

Medical Equipment;

Motor Vessels; and

Specialized Vehicles.

8.2 Procedures for Procurement of Common Use Items and Services

Councils are required to procure from the Government Procurement Services

Agency (GPSA) any item included in the approved current stores catalogue where

such item is available at lower prices than current market prices. To enable Councils

to be aware of existence of such items GPSA is required, on quarterly year basis;

publish in the Gazette, Journal and Tenders Portal, the descriptions of items available

on the stores catalogue. If an item is not available GPSA shall issue anon-availability

certificate to the PE within one day of submission of its request for purchase. Non-

availability certificate enables a PE to proceed with the procurement of the said item

using other appropriate procurement methods – PPR-R130.

Councils are also required to procure from the Agency clearing and forwarding

service where such service is available at lower prices than current market prices.

Therefore PPR-R130 with regard to procurement from GPSA is applicable only when

the prices are lower than the current market prices. This provision has two

implications. First, Councils will need to make sure that before proceeding to

procure an item from GPSA they have knowledge of market prices and it shall be the

work of PMU to establish so. Second PPRA, will need to have a data bank of market

prices for various items for the purpose of providing Councils with this vital

information needed to make a procurement decision as part of its advisory function

and for monitoring that procurement made by PE complied with PPR –R130 as part

of its regulatory function.

Procurement of common use items by the use of framework agreements is covered

under PPR-R131 and has its legality under PPA-S50 which requires Councils to use

closed or open framework agreements for the purpose of efficiency of procurement


process and reduction of procurement transaction costs within and across public

bodied.

The system of procurement of common use items and services is summarized in

Figure 8.1 below which visualizes the responsibilities of key parties namely PEs,

GPSA, PPRA and Suppliers or Service Providers.

Figure 8.1: System of Procurement of Common Use Items and Services

8.2.1 Key Issues of Procurement of Common Use Items and Services

1) The duration of framework contracts shall range from one to three years

[PPR-R131 (2)]. This provision is important as it will allow GPSA to enter

into long term contracts which will assist in lowering procurement

transaction costs and ensure continuity in the availability of goods or

services.

2) Councils are required to submit GPSA their provisional annual estimates

of the required common use items and services by the end of January each

year to enable GPSA to consolidate the list and plan for their procurement.

The list shall include descriptions, specifications, statement of

requirements and quantities of the items.


3) Procurement of items under framework agreements shall be through a

call-off order prepared by PMU and approved by the Council Director any

delegated officer- PPR-R131 (3) (b). Note that procurement of common use

items and services through framework agreements does not require any

other approval apart from that of the Council Director thus enabling fast

procurement by Councils. However, where necessary to conduct a mini

competition amongst suppliers or Service Providers an approval of a

Tender Board will be required – PPR-R131 (5). It may be necessary for

GPSA and PPRA to issue clear guidelines of grounds under which it may

be necessary to carry out a mini competition.

4) New tenderers may be accorded opportunity to participate through

invitation by GPSA on annual basis – PPR-R131 (7).

5) GPSA is allowed to make a price adjustment at any time during contract

execution if such adjustment is justified and using a factor for price

adjustment approved by PPRA- PPR-R133 (1) & (2).

6) GPSA is required to prepare and make available to Councils a schedule of

prices for common use items and services to be adhered by Councils in the

procurement of such items – PPR-R133(3);

7) The Minister for Works is required to prepare and make available to GPSA

a schedule of Unit rates to be adhered by Councils in procurement relating

to construction works- PPR-133(4);

8) GPSA is required to procure stock items for re-sale to Councils from

manufacturers, whole sellers or any other source which offer best value for

money – PPR-R135.

9) The list of all suppliers and Service Providers awarded framework

contracts shall be published in the Journal and Tender Portal – PPR-R132

(3).

8.2.2 Obligations of Parties under Framework Agreement

The following are the main obligations of the parties under Framework Contracts:

Honouring of call-off orders prepared and submitted by Council under their

agreement by ensuring that they supply and deliver all goods and services at

the rates, prices and at places stated in the frame work agreement and call-off

order;

Indemnifying the PE in the case of damage or loss of benefit caused by delay

in delivery or any other act;

Prepare and submit to GPSA a monthly sales report indicating the value of

goods and services sold to PE through call-off orders; and


Making payment to GPSA by Tenderer of fees amounting to 2 percent of each

call-off order value as prescribed in the Fifth Schedule of PPR 2013. In the case

of petroleum products the fee shall be 0.1% of each call-off order value.

Obligations of Councils in Procurement through Framework Agreements

Preparing and placing call-off orders to tenderer’s under framework

agreements;

effecting payments for goods and services delivered and accepted;

claiming for damages caused by delayed delivery or any other act; and

Reporting to GPSA and PPRA any breach of contractor unsatisfactory

performance by a tenderer under framework agreements.

Obligations of GPSA in Procurement through Framework Agreements

Preparing and signing framework agreements with tenderers;

Receiving and reviewing reports on default of framework agreements from

Councils;

Where a breach of contract is determined, submit a proposal for debarment of

a tenderer to PPRA; and

Where reported cases of non-performance by tenderer persist, GPSA may terminate

framework agreement and report the matter to the PPRA.


CHAPTER 9: PROCUREMENT OF SERVICES FROM TEMESA

The Tanzania Electrical Mechanical and Electronics Services Agency (TEMESA) is an

executive agency under the Ministry of Works mandated to carry out maintenance

and repair of motor vehicles, plant and equipment, and the installation of electrical,

refrigeration, air conditioning and electronics services in buildings owned by

government.

TEMESA was established under the Authority of the Executive Agencies Act No. 30

of 1997 by an Establishment Order by the Minister for Works through Government

Notice No. 254 of 26th August 2005. TEMESA was created in the spirit of Act No. 30

of 1997, which was to improve services and increase both effectiveness and

efficiencies of operations.

9.1 Role of TEMESA

TEMESA is specifically responsible for providing efficient and effective electrical,

mechanical and electronic services, reliable and safe ferry transport services and

hiring of equipment to government institutions and the public at large.

TEMESA is charged with the responsibility of operating and maintaining

government ferries, manning and operating government workshops mainly for

production and automotive maintenance works and undertaking consultancy

services in fields of mechanical, electrical and ICT engineering.

TEMESA also undertakes installation, repair and maintenance of refrigeration and

air conditioning systems as well as street and traffic light in cities and municipalities

countrywide.

The ministry responsible for electrical, and mechanical engineering shall prepare

detailed and acceptable schedule of requirements and specifications which shall be

made available to the Authority for use by procuring entities when procuring such

items. The Secretary to the Cabinet may, on the direction of the Cabinet and on the

advice of the ministry responsible for electrical, and mechanical engineering,

determine the type, make and size of motor vehicles or other motorised equipment

to be procured for official use of specified state officials or other senior Government

officers and shall issue a circular for that purpose.

Obligations of TEMESA

The obligations of TEMESA include the following:


Carrying out of maintenance or repair of Government owned motor vehicles,

plant and equipment, maintenance, repair and installation of electrical, air

conditioning and refrigeration and electronics services;

Enter into open or closed framework agreements for carrying out

maintenance or repair of Government owned motor vehicles, plant and

equipment, maintenance, repair and installation of electrical, air conditioning

and refrigeration and electronics services, in case they lack capacity. List of

Service Providers awarded framework agreements shall be published in

Tanzania Procurement Journal and Tender Portal;

Publish, in the Journal and Tenders Portal, the list of Service Providers

awarded framework agreements; and

In all cases whether the repair is done by TEMESA or a Service Provider

under open or closed framework agreement, conduct inspection prior and

after the service is provided and shall issue a certificate of approval.

Local Government Authorities

The obligations of LGAs procuring maintenance or repair of Government owned

motor vehicles, plant and equipment, maintenance, repair and installation of

electrical, air conditioning and refrigeration and electronics services shall be:

To maintain a record of maintenance, repairs and replacement of each motor

vehicle, piece of plant and equipment, maintenance, repair and installation of

electrical, air conditioning and refrigeration, and electronics services as

required in PPR-R137 for inspection; and

To submit to TEMESA quarterly reports on procurement made through

framework agreements.

9.2 Scope of TEMESA Services

Major roles in the maintenance of government-owned motor vehicles have been

assigned to 1) TEMESA garages and workshops, 2) private garages & workshops

and 3) Government Entities including the Councils.

TEMESA Garages and Workshops

TEMESA Garages and Workshops are responsible for maintenance and repair of

government-owned vehicles, plant and equipment including supervision of the

implementation of quality maintenance standards for mechanical, electrical and

electronics.


Private Garages and Workshops

Nominated private garages and workshops support TEMESA in maintaining and

repairing government-owned vehicles. PPR-R137(3) 2013 provides that where the

Agency is unable to carry out the repair and maintenance due to non-availability of

spare parts, technical knowhow or other resource constraints, it may procure such

services from Service Providers awarded with closed framework agreements by call

off orders in consultation with the LGA.

Councils

The Councils shall initiate and request activities for maintenance and repair of motor

vehicles, plant and equipment, and the installation of electrical, refrigeration, air

conditioning and electronics services in buildings owned by government or Council.

9.2.1 Specific Role of TEMESA

According to Executive Agency Establishment Order, the Ministry of Works (MoW)

is responsible for determining the policy framework and operational boundaries

within which TEMESA operates. TEMESA has the following duties and

responsibilities:

Undertake inspections of government vehicles to determine their

roadworthiness and the state of repair;

To identify the need for mechanical work and to authorise required repairs.

These repairs can be undertaken either by TEMESA or by outsourced private

garages;

Undertakes a vehicle inspection to itemise specific maintenance work that

may be required on a vehicle;

To acquire through frame work arrangements services from private garage

where the TEMESA workshops or garages are unable to carry out the repair

or maintenance of the government owned motor vehicles due to non-

availability of spare parts, technical know-how or other resource constraints

or because the price offered by such workshops or garages are above the

available market prices; and

To conduct inspection and supervision to ensure that Councils are complying

with the maintenance requirements of government owned vehicles. Also, the

Agency is supposed to ensure that the whole system of maintenance is

followed, from pre-inspections up to the post-inspection.


9.2.2 Specific Role of Private Garages

Private garages do provide maintenance and repair services to Procuring Entities

including Councils where TEMESA is unable to repair the vehicles. PPR-R 137 (3)

under the following conditions:

Where the private garage is among the approved list under frame work

arrangements by TEMESA; and

Where such services are to be obtained through competitive quotations from

private garages offering the same services.

9.2.3 Specific Role of Councils

The Council Director is responsible for ensuring that the government vehicle fleet in

her/his charge is maintained to an acceptable standard. Vehicles should be regularly

checked by referring to the maintenance register. The level of vehicle maintenance

(such as routine versus overhaul) and the maintenance periods should be strictly

adhered to.

The Council will initiate the repair and maintenance of their vehicles. Drivers of

government vehicles are generally responsible for advising their supervisors on the

need for repair or when service is due. The Transport Officer will report to the

administration department for approval to take the vehicle to TEMESA for

inspection and possible repair.

The roles of the Councils include but are not limited to:

Detecting indications of faults and report to TEMESA for inspection;

Keeping track of maintenance schedule (e.g. general service);

Paying for the services;

Maintaining a record of maintenance, repairs and replacement in respect of

each motor vehicle; and

Making the records available for inspection by TEMESA.

9.2.4 Work Flow for Vehicle Services

The Work Flow for services from TEMESA is as follows:

1) Work request by the Councils and sent to TEMESA requesting for:

o Cost estimates only; or

o Pre- service inspection of outsourced works.

2) The vehicle is handed over to the Inspection Section (TEMESA) by the

Transport Officer from User Department;


3) Inspection work is carried out by the Inspector of TEMESA;

4) Inspection report is sent to the Council for authorisation of repair:

o Within TEMESA or

o Private garages

5) Repair is done by the respective workshop;

6) Post-service inspection is conducted to both outsourced services and the ones

repaired at the TEMESA workshop;

7) Invoices/bills are raised and sent to the Council; and

8) The Council pays for the service.

The work flow is illustrated in figure 9.1:

Figure 9.1: TEMESA Work Flow

PRPRPPP

USER DEPARTMENT:

CLIENT / COUNCIL

PRIVATE

WORKSHOPS All claims

private

garages

All

requests Delivery

bills

Co-ordinating centre

(Manager TEMESA)

For outsourced

garages/workshop

s

All pre-

inspections

All post-inspections All cost

estimates

Pre-inspection of and post inspection by TEMESA

In house initiation by the Council


CHAPTER 10: SECTOR SPECIFIC PROCUREMENT: ICT EQUIPMENT, MEDICINES & MEDICAL SUPPLIES AND AGRICUTURAL INPUTS

This chapter covers the procedures for sector specific procurement including ICT

Equipment, Medicines & Medical Supplies and Agricultural Inputs.

10.1 ICT Equipment

Information and Communications Technology (ICT) is an umbrella term that

includes any communication device or application, encompassing: radio, television,

cellular phones, computers, network hardware and software, satellite systems and so

on, as well as the various services and applications associated with them, such as

videoconferencing and distance learning.

ICTs are often spoken of in a particular context, such as ICTs in education, health

care, or libraries.

According to PPR-R 138 computers and other related information technology

equipment and tools includes computers of any type, computer printers, scanners,

servers, storage media, software and local area networks.

10.1.1 Characteristics of ICT Equipment

ICT equipment and systems are characterized by the following features:

Enormous level of continuing innovation;

Prices come down while performance increases;

Lifetime of “hard” investments potentially low;

Technology now permeates business processes, with high level of increased

integration across all systems; and

Private sector (as provider) is key driving force.

10.1.2 Identification of ICT Needs

The Council is required to identify the needs and application of the ICT facilities in

order to develop concise specification in line with the ultimate use. The following

are typical parts of ICT components and procurement needs:

General studies (BPR, IT strategy, establishing the linkage with project goals,

establishing priorities, approach);

Design studies (user requirements, functional specifications, designs,

“blueprints”);


Application software customization and/or development;

Hardware and standard software delivery;

Project management (often a complex task);

Training (users, technical staff);

Maintenance of ICT equipment, network and servers; and

Other services (e.g., digitization, data conversion, surveys)

10.1.3 Procurement Procedures for ICT

The procurement procedures for ICT equipment are explained below:

Identification of ICT needs: from the Annual Procurement Plan or the project

requirements;

Specification of requirements: The Council shall either obtain standard

specifications when required from the Ministry responsible for information

and communication technology or develop their own specifications to fit

particular standard or requirements; in this case the specifications require

approval from the ministry or where such prepared detailed and acceptable

specifications of items falling under their jurisdiction which shall be availed to

PPRA for use by the LGAs;

Preparation of Standard Bidding Document: The Council shall use the SBD

for ICT issued by PPRA to prepare tender documents for procurement of the

required ICT equipment;

In the preparation of the SBD, the Council shall clearly state the major

components that will assist in developing concise specification in line with the

ultimate use; specific requirements can include the following:

o Delivery and installation of equipment;

o Installation of the operating systems;

o Training component;

o Serviceability and warranty undertaking.

The Council shall then follow the procurement process as explained in detail in

chapter five of this Manual.

10.2 Medicines and Medical Supplies

Definitions related to procurement of medicines and medical supplies include:

Department: means the Medical Stores Department (MSD);

Catalogue Items: means approved list of medicines and medical supplies

stocked by the MSD;


Medicines: have the meaning ascribed to it by the Tanzania Food, Drugs and

Cosmetics Act;

Medical Supplies or Medical Devices: has the meaning ascribed to it by the

Tanzania Food, Drugs and Cosmetics Act; and

Non Catalogue Items: means the list of medicines and medical supplies

which are not stocked by the Department.

10.2.1 Procurement Procedures for Medicines and Medical Supplies

Procedures for procurement of catalogue and non-catalogue item are as summarized

below:

Procurement Procedures for Catalogue Items: Catalogue items are the approved list

of medicines and supplies stocked by MSD. Key provisions for procurement of

catalogue medicines and medical supplies through Medical Stores Department

include:

Catalogue items shall be published on yearly basis by MSD in Tanzania

Procurement Journal and Tenders Portal;

Councils are required to submit their provisional annual estimate of catalogue

items to MSD by the end of January each year;

The list shall include descriptions, specifications, statement of requirements

and quantities of the items;

MSD shall arrange for procurement of catalogue items through framework

agreements by placing call-off orders;

PEs shall place an order to MSD of items included in the price catalogue

within one (1) day after reaching the buffer stock;

If an item is not available, MSD shall issue a non-availability certificate to the

PE within one (1) day of submission of its request for purchase; and

Non- availability certificate enables a PE to proceed with the procurement of

the said item(s) by using other appropriate procurement methods – PPR-

R140.

Procurement Procedures for Non-Catalogue Items: Non-Catalogue Items are the list

of Medicines and medical supplies not stocked by MSD). Key provision for

procurement of non-catalogue medicines and medical supplies through Medical

Stores Department include- PPR –R141:

Councils are required to submit their provisional annual estimate of non-

catalogue items to MSD by the end of January of each year;


The list shall include descriptions, specifications, statement of requirements

and quantities of the items; and

MSD shall arrange for procurement of non-catalogue items through

framework agreements by placing call-off orders.

Procurement Procedures of MSD: PPR –R142 covers the procurement procedures to

be adopted by MSD and include the following:

Catalogue and non-catalogue items shall be procured from manufacturers,

wholesalers or any other source which offer best value for money using

framework agreements;

Subject to the approval of the Tender Board, MSD may conduct mini-

competition amongst providers awarded framework agreements;

Several providers for one product may be awarded framework agreements –

this should be clearly stated in the tender documents;

Framework agreements may last up to three years; and

MSD is allowed to make a price adjustment at any time during contract

execution if such adjustment is justified and using a factor for price

adjustment approved by PPRA- PPR-R143.

10.3 Agriculture Inputs

Definitions related to procurement of agriculture inputs include

Agriculture inputs: materials, tools and equipment used in the agriculture

sector; and

Agriculture sector: economic sector which covers farming and livestock

keeping.

Agriculture inputs are described in various forms depending on the use and

application as appears in the table below.

Table 10.1: Agriculture Inputs and their Application

S/n TYPE OF AGRICULTURE INPUT APPLICATION

1. Tractor and its ancillaries Cultivation, irrigation, weeding,

transporting and milling

2. Power tillers and its related facilities Cultivation, and transportation

3. Trapezes and its related facilities Cultivation

4. Spare parts for tractors Repairs and maintenance

5. Hand hoes, machetes, axes, hummers,

spade, knives and blade

General agriculture equipment


S/n TYPE OF AGRICULTURE INPUT APPLICATION

6. Water pumps, power generators, plastic

pipes

Irrigation tools

7. fumigation machine; manual and Powered Fumigation tools

8. Gumboot, groves, masks, element and

overall

Farmers’ wears

9. Driving power (fuel like diesel, petrol,

kerosene)

Source of power to machines

10. Sucks and other containers Packing materials

11. Fertilizer of all kinds For fertilization of clops

12. Pesticides of all kinds For killing of pests

13. Insecticides of all kinds For killing of insects

14. Weed killers of all kinds For killing of unwanted plants

15. Other agriculture chemicals For general agriculture activities

16. Animal vaccine For protection of animals from

diseases

17. Special Animal growing foods For faster growing of animals

18. General Animal foods For general rising of animals

19. Animal treatment medicines For treatment of ill animals

20. Other animals’ requirements For general animal keeping

Procurement Characteristics of Agriculture Inputs

They are supplied in special shops or markets;

Equipment, inputs and maintenance/repair are procured in function of the

season(s), technology and type of business (farming, livestock, horticulture,

etc);

Qualified suppliers are shortlisted by the ministry responsible for agriculture

and livestock;

Councils are required to procure them from the shortlisted suppliers unless

otherwise provided by the ministry of agriculture and livestock; and

There are relatively few suppliers in the market.

10.3.1 Procurement Procedures for Agriculture Inputs

Inputs for agriculture can be procured using different methods and approaches as

provided in the regulations and other directives of the Authority.

Inputs included in the Annual Procurement Plan

The Councils are required to submit their provisional annual estimate of agriculture

inputs to the Ministry of Agriculture and Livestock. The list shall include

descriptions, statement of requirements and quantities of the required agriculture

inputs.


On the implementation of the APP, the PMU shall request for the list of shortlisted

suppliers and specification for the required agriculture inputs from the Ministry of

Agriculture and Livestock.

On receipt of the list of shortlisted suppliers, the Council shall proceed with

restricted procurement processes and procedures as stipulated in this manual

(Chapter 5).

Inputs not included in the Annual Procurement Plan

Whenever there arise the needs for agriculture inputs, the User Department shall

prepare a list of the required inputs and submit to the Procurement Management

Unit for recommendation.

The Procurement Management Unit of the LGA shall carry out procurements needs

analysis, determine the requirements, recommend for procurement and send for

approval to the Council Tender Board after confirmation of availability of budget

and funds.

When authorized, the PMU shall request for the list of shortlisted suppliers and

specification for the required agriculture inputs from ministry of agriculture and

livestock.

On receipt of the specification and the shortlisted bidders the Council shall proceed

with restricted procurement processes and procedures stipulated in this manual.

(Chapter 5).

10.4 Education Requirements

The Councils are responsible for administration of primary and secondary schools,

including the assurance of the availability of training materials, equipment, tools,

buildings and other fixed assets requiring in providing education services in LGAs.

Example of Education Requirements

The following table shows examples of education requirements and their

procurement categories.

Table 10.2: Education Requirements and Procurement Category

S/N Education Requirement Procurement Category

1 Stationeries Goods

2 Text books Goods

3 Equipment Goods


S/N Education Requirement Procurement Category

4 Tools Goods

5 Training guides Goods

6 Curricular, syllabus Goods

7 Other training materials Goods

8 Furniture and fittings Goods

9 Construction of class rooms Works

10 Construction of residential houses Works

11 Construction of office Works

12 Construction of laboratories Works

13 Construction of libraries Works

14 Construction of toilets Works

15 Construction of sports infrastructure Works

16 Repair of buildings Works

17 Decoration/renovation Works

18 Construction drainage systems Works

19 Drilling of water wells Works

20 Plumbing Works

21 Teachers training seminars Consultancy

22 Installation of computer systems Consultancy

23 Development of website Consultancy

24 Installation of electrical systems Consultancy

25 Provision of catering services Non Consultancy

26 Provision of security services Non Consultancy

10.4.1 Procurement Procedures for Education Requirements

With the exemption of procurement of text books, the Council shall conduct

procurement of all the other education requirements by following the processes and

procedures set out in this manual.

Procurement of Text Books: Included in APP

The Councils are required to submit their provisional annual estimate of text books

to the Ministry of education. The list shall include descriptions, statement of

requirements and quantities of the required text books. On the Implementation of

the APP, the Council shall request for a list of shortlisted bidders and specification

for the required text books from the Ministry of Education.

On receipt of the list of shortlisted bidders and specification for the required text

books from the Ministry of Education, the Council shall proceed with restricted

procurement processes and procedures as stipulated in this manual (Chapter 5).


Procurement of Text Books: not included in APP

Whenever there arise the needs for text books, the User Department shall prepare a

list of the required text books and submit it to the Procurement Management Unit

for recommendation. The Procurement Management Unit shall carry out

procurements needs analysis, determine the requirements, recommend for

procurement and send for approval to the Council Tender Board after confirmation

of availability of budget and funds.

When authorized, the PMU shall request shall prepare the list of the required text

books and request list of shortlisted bidders for such text books from the Ministry

responsible for education.

On receipt of the specified text books and the shortlisted bidders, the Council shall

proceed with restricted procurement processes and procedures as stipulated in this

manual. (Chapter 5).

10.5 Fishing Facilities

Fishing means any activity concerned with taking, capturing, processing, preserving,

storing, transporting, marketing or selling fish or fish products. Fishing facilities

include fishing rods, cast nets, fishing lines, etc. In case a need arises for

procurement of fishing equipment or any fishing inputs, the Council shall follow the

procedures for procurement of agriculture inputs as stipulated in this manual.


CHAPTER 11: DISPOSAL OF COUNCIL ASSETS BY TENDER

Public Asset means any property owned by a public body tangible and intangible,

including but not limited to physical property, land, shares or proprietary rights.

Public assets include but are not limited to:

Furniture and fittings of all kind;

Plants and machineries;

Tools and equipment;

Land and buildings;

Motor vehicles, plant and motor cycles; and

Shares or proprietary rights.

Disposal in this context means the divestiture of public assets including intellectual

and proprietary rights and goodwill, and any other rights of the Council by any

means, including sale, hire-purchase, licences, tenancies, rental, lease, franchise,

auction or any combination however classified other than those regulated by the

Public Corporation Act.

11.1 Reasons for Disposal of Assets

Prior to commence the proceedings for the disposal of assets, the Council shall

identify the assets to be disposed of and in particular provide relevant reasons for

the disposing of such assets. Need for disposal of the Council assets may arise as a

result of the following:

Wear and tear;

Obsolesces effect;

Diminishing economic significance;

Divesture;

Change in technology;

Surplus; and

Redundancy.

11.2 Valuations of Council Assets

The Council shall obtain two valuations of the subject asset before commencing any

disposal proceedings as follows:


If required by law, a first valuation shall be obtained from a competent

authority and a second independent, market-based valuation shall be

obtained from an appropriate authority or provider; or

Where there is no legal requirement, two independent valuations shall be

obtained from appropriate authorities or providers;

The valuations shall be confidential and the identity and recommendations of each

valuer shall not be revealed to the other. No valuation of an asset shall be required

where the cost of valuation is likely to be in excess of the money expected to be

realised through the disposal process.

Basic Requirements

Where the valuation is within a range specified in the guidelines issued by

PPRA, the Council shall use the average of the two valuations to determine a

reserve price for the asset, which shall be the minimum sale price of the asset;

Where the valuations differ by more than the range specified in the guidelines

issued by PPRA, the valuers shall be informed of significant difference in their

valuation, without specifying the values, and shall be asked to revise their

valuation;

Where the revised valuation is submitted which is within the range specified

in the guidelines, the Council shall proceed to set a reserve price;

Where the valuer confirms the original valuation, or where the revised

valuation still differs by more than the range specified in the guidelines, a

third independent valuation shall be obtained; and

Where a third valuation is obtained, Council shall recommend a reserve price,

using all three valuations and the range of variation between them.

Where the highest evaluated tender is less than the reserve price, the CTB in

consultation with Council Director may:

o Obtain further valuation from an independent source;

o Arrange for new tenders to be submitted;

o Use an alternative method of disposal, which is likely to obtain a higher

price; or

o Sell the asset at the reduced price subject to obtaining the approval from

PPRA.

In deciding on the appropriate action, the Council Tender Board and Council

Director shall consider the difference between the highest evaluated tender and the

valuation or reserve price, the likely cost of possible action and the possibility of

collusion between tenderers.


Qualification of Asset Buyer

For purposes of qualifying to participate in disposal proceedings, an asset buyer

shall:

Have sufficient financial resources to perform the disposal contract;

Have legal capacity to enter into a disposal contract;

Not have been convicted of any criminal offence or found to have made false

statements or misrepresentations as to his qualification to enter into a disposal

contract within a period of five years preceding the commencement of the

disposal proceeding, or has not been otherwise disqualified pursuant to

administrative suspension or disbarment proceedings; and

Not be insolvent, in receivership, bankruptcy or being wound up, his affairs

are not being administered by a court or a judicial officer, his business

activities have not been suspended and is not the subject of legal proceedings

for any of the reasons prescribed in this regulation.

Participation by Asset Buyer

A Council may require assets buyers participating in disposal proceedings to

provide appropriate documentary evidence or other information as the Council

considers necessary. Any requirement established pursuant to this regulation shall

be prescribed in the solicitation documents:

A Council shall impose no criterion, requirement or procedure with respect to

the qualifications of asset buyers other than those provided for in the

regulations;

The Council shall evaluate the qualifications of asset buyers in accordance

with the qualification criteria and procedures prescribed in the solicitation

documents;

The Council shall establish no criterion, requirement or procedure with

respect to the qualifications of asset buyers that discriminates against or

among asset buyers on the basis of nationality, or that is not objectively

justifiable;

Except in cases in which a Council decides on grounds specified in

Regulations or according to provisions of law, to limit participation in

disposal proceedings on the basis of nationality;

A Council that limits participation on the basis of nationality shall include in

the record of the disposal proceedings a statement of the grounds and

circumstances on which it relied;

A Council shall, when first soliciting the participation of buyers in the

disposal proceedings, declare to them that they may participate in the


disposal proceedings as appropriate regardless of nationality; the declaration

shall not be subsequently altered; and

Where a Council decides to limit participation, it is required to communicate

its decision to the relevant parties.

11.3 Tendering Proceedings and Disposal Process

Tendering proceedings for the disposal of LGA assets by tender follows the same

sequence as provided for in the LGA procurement cycle. The process starts with

identification of assets to be disposed of, invitation to disposal by tender and

advertising, preparation of solicitation documents, receiving and opening of tenders,

evaluation of tenders, negotiation with the highest evaluated tenderer, award of

contract and record keeping.

11.3.1 Approval of Disposal and Disposal Plan

It is provided under PPR-R 326 that any disposal of assets by tender by the Council

shall be authorized by the Paymaster General or competent authority. The procedure

for obtaining approval for disposal of public assets by tender shall be in accordance

with the Public Finance Act. In other words, the approval shall have to be sought

from the Council Finance Committee as well as the Council Tender Board prior to

the advertisement of the disposal. The same will appear in the Council Annual

Procurement Plan.

Disposal Plan

Assets to be disposed of shall be grouped in lots in a manner which attracts

maximum possible competition. Where an asset is to be disposed of by tender, the

Council shall maximize the number of assets to be disposed of at a time in order to

reduce transaction costs. The Council may group assets for purposes of common

disposal.

Environment

The Council shall pay due regard to repair and re-use of goods wherever practicable

and economically viable before disposing them by tender and procuring new

replacements.

11.3.2 Methods of Disposal and Conditions for Use

The Council that intends to commence a disposal of assets by tender process shall

provide all eligible prospective asset buyers with timely and adequate notification of

the requirements and ensuring equal opportunity to tender for the required assets to

be disposed of. A Procuring Entity may use restricted or direct disposal by tender

where:


The market is limited and few buyers, who are willing to pay the reserve

price are identified; or

National security, public interest, legal or human rights issues or

environmental considerations are served by selling to a particular company,

group or individual.

Competitive Tendering

All disposals of public assets shall be conducted through competitive tendering

except for disposals under regulation 328(2). According to PPA-S 64 of 2011 the

Procuring Entity shall apply the methods prescribed in the regulations depending on

the type and value of the procurement or disposal. In any case, the successful

tenderer shall be the tenderer evaluated to have the capacity and capability and

undertake the contract assignment based on the highest evaluated offer.

International Competitive Tendering

In international competitive tendering a Procuring Entity shall invite asset buyers,

by means of a tender notice that shall be advertised nationally and internationally to

submit tenders for the purchase of public Assets

National Competitive Tendering

In national competitive tendering, the Procuring Entity shall invite assets buyers

regardless of their nationality, by means of a tender notice advertised only in the

United Republic of Tanzania, to submit priced tenders for purchase of public assets.

The national competitive tendering may be used in cases where:

Payment may be made wholly in Tanzanian shillings; and

The estimated value of assets does not exceed the threshold for national

competitive tendering prescribed in the Fifteenth Schedule to these

Regulations.

11.3.3 Tendering Proceedings

Invitation to Disposal of Assets by Tender and Advertising

The Council which intends to commence competitive tendering proceedings shall

prepare a tender notice inviting asset buyers to submit priced offers for buying

assets to be disposed of and advertise it in the Journal and Tender Portal in

accordance with the First Schedule to the Procurement Regulations.

The PMU shall table the invitation and the disposal by tender documents to

the Tender Board for comment and approval;


Invitations which are issued without prior approval by the Tender Board shall

not be considered as sufficient and adequate and consequently the Procuring

Entity will be requested to issue new invitations to tender;

A tender notice shall be published in sufficient time, to enable prospective

buyers to obtain disposal by tender documents, prepare and submit their

responses before the deadline for receipt of tenders;

A Procuring Entity shall offer a reasonable opportunity to potential buyers of

public assets to inspect an asset before the date or deadline for tendering; and

The time specified for the opening of the tenders shall be the same as the

deadline for receipt of tenders or immediately thereafter, and shall be

repeated in the solicitation document, together with the place for tender

opening.

Contents of Invitation to Disposal of Assets by Tender

The invitation of tenders for disposal of assets shall contain the following

information:

a) The name and address of the Council;

b) Description of the asset to be disposed of, the location of the asset and the

arrangements for a potential asset buyer to inspect the asset, including a

statement that the asset is sold on “as is, where is” basis;

c) The means or conditions of obtaining the solicitation documents and the place

from which they may be obtained;

d) The price, if any, charged by the Procuring Entity for the solicitation

documents;

e) The currency and means of payment for the solicitation documents;

f) The 1anguage or languages in which the solicitation documents are available;

g) The place for the submission of tenders; and

h) The deadline for the submission of tenders as well as the place, hour and date

for Contents of solicitation documents.

Contents of Solicitation Documents

The solicitation documents shall contain the following instructions to asset buyers:

a) Criteria and procedures relating to the evaluation of the qualifications of asset

buyers and demonstration of qualification;

b) The requirements as to documentary evidence or other information that must

be submitted by asset buyers to demonstrate their qualifications;

c) The description of the assets, their locations and conditions for sale,

responsibilities for the risk and cost for dismantling and removing the asset;


d) The terms and conditions of the disposal contract, to the extent they are

already known to the Procuring Entity, and the contract form, if any, to be

signed by the parties;

e) If asset buyers are permitted to submit tenders for only a portion of the assets

to be disposed of, a description of the portion or portions for which tenders

may be submitted;

f) The currency or currencies in which the tender price is to be formulated and

expressed;

g) The language in which tenders are to be prepared;

h) If an asset buyer may not modify or withdraw its tender prior to the deadline

for the submission of tenders without forfeiting its tender security, a

statement to that effect;

i) The manner, place and deadline for the submission of tenders;

j) The period of time during which tenders shall be in effect;

k) The place, date and time for the opening of tenders

l) The procedures for opening of tender and criteria for examining and

evaluating tenders;

m) The currency that will be used for the purpose of evaluating and comparing

tenders;

n) The means by which asset buyers may seek clarification of the solicitation

documents, and a statement as to whether the Procuring Entity intends, at

this stage, to convene a meeting of asset buyers;

o) Any requirements of the Procuring Entity with respect to the issuer and the

nature, form, amount and other principal terms and conditions of any tender

security to be provided by asset buyers submitting tenders, and any such

requirements for any security for the performance of the procurement

contract to be provided by the asset buyers that enters into the disposal

contract;

p) References to the act, the regulations and other written laws and regulations

directly pertinent to the disposal proceedings, provided, however, that the

omission of any such reference shall not constitute grounds for review under

section 95 of the act or give rise to liability on the part of the Procuring Entity;

q) The name, functional title and address of one or more officers or employees of

the Procuring Entity who are authorized to communicate directly with and to

receive communications directly from asset buyers in connection with the

disposal proceedings, without the intervention of an intermediary;

r) Notice of the right provided under section 95 of the act to seek review of an

unlawful act or decision of, or procedure followed by, the Procuring Entity in

relation to the disposal proceedings;


s) Where the Procuring Entity reserves the right to reject all tenders pursuant to

regulation 16 a statement to that effect;

t) Any other requirements established by the Procuring Entity in conformity

with the act and these regulations relating to the preparation and submission

of tenders and to other aspects of the disposal proceedings.

Examination, Evaluation and Comparison of Tenders

The Evaluation Committee shall be appointment in the usual manner, and evaluate

on a common basis the opened tenders in order to determine the cost or price to the

disposing entity of each tender in a manner that permits a comparison to be made

between the tenders on the basis of the evaluated costs or prices. The tender

evaluation shall be consistent with the terms and conditions set forth in the tender

documents and such evaluation shall be carried out using the criteria explicitly

stated in the solicitation documents. Tenders shall be comparable among themselves

in order to determine the highest evaluated price for disposal of asset by tender by

using the following procedures:

a) In determining the highest evaluated tender for disposal of asset the preferred

evaluation method shall be the evaluation based on price only unless other

factors, such as end-user or export restrictions, or a need to attach conditions

to a sale are taken into consideration, and stated clearly in the solicitation

document;

b) Where the highest-priced tender has been submitted by more than one

tenderer, a Procuring Entity shall invite the tenderers who submitted

identically priced tenders to submit a revised tender;

c) No tenderer, other than those who submitted the identical highest priced

tender, shall be permitted to submit a revised tender or participate in the

retendering procedure in any way;

d) A revised tender shall only contain a revised price and a tenderer shall not be

permitted to change the terms and conditions, technical details,

documentation or any other aspects of their original tender, in any way;

e) A revised tender shall be written and sealed and submitted in the same way

as the original tender;

f) A tenderer shall be given a reasonable period of time prior to the deadline for

submission of their revised tender;

g) Where evaluation is based on price only and it is reasonable to conduct and

conclude the evaluation immediately in the presence of a tenderer at a public

tender opening, a disposing entity may, if the tenderer agrees, conduct the re-

tendering procedure immediately; and


h) Where the re-tendering procedure is conducted immediately, a tenderer shall

be given access to a private location in which to discuss and prepare the

revised tender and the tenderer shall be provided with all reasonable

assistance, such as writing and sealing materials calculators and access to a

telephone.

Revised Tender

The tender opening procedure for the revised tender shall be the same as that for the

original tender and evaluation shall be conducted in the same manner as the original

evaluation, except that the price contained in the revised tender shall replace the

original price in the following circumstances:

Where identical highest priced tenders are received during a retendering

process, further re-tendering shall be held in accordance with this regulation;

Where it is subsequently discovered that an error was made in the original

evaluation, including, an arithmetic error or application of an exchange rate,

and that as a result tenderers had not submitted identical highest priced

tenderers, the re-tendering procedure shall be declared null and void and the

revised tenders shall not be considered;

Where re-tendering fails, the whole process shall be cancelled and retendered;

and

Where the evaluation is based on price only, a contract shall be awarded to

the tenderer with the highest price.

Where written tenders are received, the Evaluation Committee shall:

Correct any arithmetic errors;

Convert the tenders to a common currency;

Where tender prices are expressed in two or more currencies, the tender

prices of all tenders shall be converted to the same currency, and according to

the rates specified in the solicitation documents, for the purpose of evaluating

and comparing tenders;

The rates of exchange to be used in such valuation shall be the selling rates

published by the Bank of Tanzania and applicable to similar transactions;

Compare the tender price with the value of an asset or reserve price, where

appropriate; and

Contract award shall be recommended to the best evaluated price, which

meets the eligibility requirements and passes the evaluation criteria, subject to

any reservations in regard to the valuation or reserve price.


In evaluating and comparing tenders, a disposing entity may grant a margin of

preference for the benefit of Tanzanian asset buyers provided that the margin of

preference shall be calculated in accordance with Regulations 33 and reflected in the

record of the procurement proceedings.

Evaluation Report

The Evaluation Committee is required to prepare a detailed report on the evaluation

and comparison of tenders, setting forth the specific reasons of which the

determination of the highest evaluated price tender is based. The evaluation report

shall be submitted to the Procurement Management Unit to check if it is in

accordance with the tender document. If found satisfactory, the Procurement

Management Unit shall forward the same to the Tender Board for approval; and if

not, the PMU will return the evaluation report with reasons to the evaluation team

for re-evaluation.

Negotiations

Negotiations shall only be held with the highest evaluated tenderer for disposal of

assets. The Council Tender Board shall approve the negotiations plan prior to any

negotiations taking place. Prior to confirming any agreement reached, the

Procurement Management Unit shall seek approval of the Tender Board.

Negotiation Team

The negotiation team shall prepare a negotiations plan which shall specify the issues

to be negotiated as specified in the evaluation report and the objectives to be

achieved and whenever possible, quantify the objectives and set maximum and

minimum negotiating parameters.

The PMU recommends membership of a negotiation team based on appropriate

seniority and experience depending on the value and complexity of the

procurement. The membership shall be approved by the Council Director who shall

also name the chairman from amongst the members.

The number of members of the negotiation team shall in all cases be a minimum of

three and maximum of five, and may include members of the original Evaluation

Committee or different officers. The negotiation team shall include members with

relevant mix of skills and experience, including:

Knowledge of end-user requirements;

Negotiation skills;

Procurement and contracting skills;


Financial management skills; and

Technical skills relevant to the subject of the disposal.

The chairman of the negotiation team shall be responsible for:

Ensuring all arrangements for negotiation meetings are made;

Chairing all negotiations;

Ensuring the negotiations are conducted in accordance with all legal

requirements;

Ensuring all members are aware of their responsibilities, including the need

for confidentiality;

Ensuring all members have a common understanding of the process of

negotiations and objectives to be achieved;

Ensuring members understand their own role in the negotiations and the

standard approach of the team;

Managing communications between the negotiation team and the tenderer or

any other body;

Ensuring that the negotiation team has access to necessary information; and

Preparing the final report on the negotiation or ensuring that it is prepared.

Recommendation and Award

The negotiation team shall produce minutes of the meeting and shall obtain the

tenderer’s written agreement that it is a true and accurate record of the negotiations

held and submit the minutes to the PMU. The PMU shall submit the

recommendations of the negotiation team to the Tender Board to:

Proceed with contract award to the recommended tenderer, incorporating the

agreements reached during negotiations;

Revise the negotiation objectives and hold further negotiations; or

Terminate the negotiation and reject the tenderer.

Where the negotiation team recommends rejection of the tenderer, it may also,

where appropriate, recommend inviting the next ranked tenderer for negotiations.

The results of any approved negotiations shall be specified in a letter of tender

acceptance and incorporated into the contract document.

Where negotiations are commenced with the next ranked tenderer the Procuring

Entity shall not reopen earlier negotiations; and the original tenderer shall be

informed in writing of the reasons for termination of the negotiations.


However, it should be noted here that “Negotiations” shall not be conducted purely

for the purpose of increasing prices. Negotiations with a tenderer are not permitted

until the Tender Board has approved the Evaluation Committee’s recommendations

of the highest evaluated tenderer and the need to hold negotiations.

Acceptance of Tender and Entry into Force of Contract

The tender which is ascertained to be the successful tender shall be accepted and the

notice of acceptance of the tender shall be given promptly to the asset buyer

submitting the tender after all necessary approvals have been obtained.

The solicitation documents may require the asset buyer to sign a written disposal

contract conforming to the tender. In such cases, the Procuring Entity and the asset

buyer shall sign the disposal contract within twenty eight (28) calendar days after

the notice of acceptance has been dispatched to the asset buyer.

The disposal contract - made in accordance with ‘the terms and conditions’ of the

accepted tender- shall enter into force when the notice referred has been dispatched

to the awarded asset buyer. The notice is considered dispatched when it is properly

addressed or otherwise directed and transmitted to the asset buyer, or conveyed to

an appropriate authority for transmission to the asset buyer by a mode authorized in

the regulations.

Where the awarded asset buyer fails to sign a written disposal contract, if required to

do so, or fails to provide any required security for the performance of the contract,

the Procuring Entity shall, on the prior written approval of the Tender Board, select a

successful tender from among the remaining tenders that are in force, subject to the

right of the Procuring Entity, to reject all remaining tenders.

Upon the entry into force of the disposal contract and, if required, the provision by

the asset buyer of a performance security in respect of the contract, notice of the

disposal contract shall be given to unsuccessful asset buyers, specifying the name

and address of the asset buyer that has entered into the contract and the contract

price.

Confidentiality

The information relating to the examination, clarification, evaluation and

comparison of tenders and recommendations for the award of a contract shall not be

disclosed to asset buyers or to any other person not involved officially in the

examination, evaluation or comparison of tenders or in the decision on which tender

should be accepted.


Any effort by a tenderer to influence the Procuring Entity’s or approving authority

award decision may result in the rejection of his tender.

Record of Proceedings

A Procuring Entity shall maintain a record of its disposal proceedings and contract

management pursuant to PPR-R 15 of 2013. Where a contract is on-going or is

challenged, the records shall be kept for one additional year after the completion of

the contract or the settlement of the dispute, whichever comes earlier. The following

records of a disposal proceeding shall be maintained by the Council:

Records of the disposal process;

Records relating to contracts management; and

Records of investigations of complaints or any other matter related to the Act

or the regulations.

The records of disposal of a public asset by tender shall contain the following

documents, where appropriate:

a) Request to initiate disposal proceedings, including a report of a board;

b) Copy of an invitation notice;

c) Copies of solicitation documents, their amendments or clarifications and any

additional information;

d) Report of inspection of the assets by potential tenderers;

e) Record of the tender openings;

f) Copy of all tenders evaluated, clarifications requested and responses received;

g) Evaluation report;

h) Minutes of meetings on the disposal, including negotiation proceedings;

i) Copy of a letter of tender acceptance to a successful tenderer, if any;

j) The contract, if any;

k) All documents related to contracts management, including records of receipts

of payment and handing over certificates;

l) Copy of the update to the Procuring Entity asset register;

m) All correspondence between a disposing entity and a tenderer or a third party

disposal agent; and

n) Copy of all submissions to the tender board and all decisions related to the

disposal, including, the choice of disposal method, approval of solicitation

documents, approval of an evaluation report, approval of negotiations,

contract award decision, approval of contract documents and any decision to

suspend or cancel disposal proceedings;

o) The write-off approval from the Paymaster General.


CHAPTER 12: PROCUREMENT CONTRACT MANAGEMENT AND QUALITY ASSURANCE

________________________________________________________________ In accordance with the PPA 2011, management of procurement contracts is part of

the responsibility of the PMU and contract managers/supervisors of the Council.

However it must be noted that the beneficiary department plays a crucial role in

contract management and quality assurance. As the department with vested interest

in the success of the contract they have to play a very big part in receiving the

supplies and quality assessment and acceptance. Effective management of contracts

is essential to ensure that the objectives of the procurement process are achieved and

that all contractual obligations and activities are completed efficiently by both

parties to the contract. The User Department and the PMU must ensure that routine

monitoring of all current contracts is maintained so that swift remedial measures can

be taken when problems arise, or preventative action taken when problems are

foreseen.

If during contract implementation there are any serious disputes with the supplier,

contractor, consultant or Service Provider regarding the interpretation of the

provisions of the contract, the PMU should refer the issue(s) to the Council Legal

Officer for advice or to the attorneys of the Council.

Contract management is based on the principle that the contract is a legal agreement,

a partnership with rights and obligations that must be met by both sides to achieve

the goal. Contract management is aimed not at finding fault, but rather at identifying

problems and finding solutions together with all contracting parties involved.

Quality assurance has the aim to ensure contract performance as per terms,

conditions and requirements. The stages of contract management are intended to

ensure that the parties work together to achieve the objectives of the contract. This

requires systematic monitoring and actions to resolve issues before the contract

reaches its conclusion on aspects including but not limited to:

Contract effectiveness;

Delivery and inspections;

Insurance claims;

Payments to the consultant, supplier or contractor;

Performance monitoring for services and works;

Contractual disputes;

Delays in performance;


Claims for damages;

Initial and final handing-over of construction works;

Installation and commissioning of equipment;

Acceptance of deliverables;

release of performance securities and retentions; and

Contract closure.

12.1 Contract Management of Goods

Once the contract has been signed there shall be arrangements for the delivery of the

goods as per terms and condition of the signed contract. The Procurement

Management Unit will:

Monitor the delivery schedules of all purchases to ensure that they are

dispatched, delivered or collected on time;

Receive reports on pre-shipment inspection of goods and contact the Supplier

in writing requesting rectification of any discrepancies or deficiencies;

Contact the Supplier or shipper to identify the causes of any delay in delivery;

Initiate and supervise any process for claims against insurance or the

supplier; and

Report to the Tender Board any failure by the Supplier in his contractual

obligations.

12.1.1 Inspection and Acceptance of Goods

Goods delivered shall be inspected, sampled and tested by the Council and they

shall not be accepted if they are below the standards stipulated in the contract. This

is done by the appointed Inspection and Acceptance Committee.

Technical or Scientific Test

In case a technical or scientific test is needed, an expert or qualified person in respect

of the goods may be invited for consultation, or the goods may be sent to that

qualified person for test. Contracts shall contain a clause that the supplier shall be

responsible for all costs and expenses incurred due to a justified rejection of his

goods on the ground that they are below the standards stipulated in the contract.

Goods found to be correct and complete

Where goods are found to be correct and complete, the goods shall be accepted, and

the supplier shall be regarded as having effected delivery on the day the goods were

brought to the place of delivery. After acceptance, the goods shall be handed over to

the responsible officer within the Procuring Entity.


Goods found to be incorrect or incomplete

When the supplier delivers the correct goods, but deficient in number, or free from

deficiency in number but not altogether correct, only the correct ones shall be

inspected and accepted. This shall be promptly reported to the Procuring Entity who

shall notify the supplier within three (3) working days from the date of the finding,

Provided that this shall not deprive the Procuring Entity the right to impose a fine

on the supplier for the incomplete and incorrect delivery.

Goods Acceptance Certificate

Where goods are accepted, a signed Goods Acceptance Certificate shall be issued to

the supplier and a copy of the certificate shall be kept by the Procuring Entity to

support the processing of payment.

Inspection and acceptance of goods in set or unit

In case of goods which are in a set or unit, with any missing component which

would render the use incomplete, the supplier shall not be considered to have

delivered the goods. This shall be promptly reported to the Procuring Entity which

in turn shall notify the supplier within three (3) working days from the date of the

finding.

Refusal to accept delivery

In case any member of the Inspection and Acceptance Committee refuses to accept

delivery by making a written dissenting opinion, the committee shall submit it to the

Accounting Officer for consideration and decision. Where the Council Director

agrees with acceptance of delivery, the committee shall proceed.

Period of inspection and acceptance

The inspection and acceptance of goods shall be completed within the time specified

in the contract. Where receipt of goods is delayed, or is likely to be delayed beyond

the time for delivery prescribed in the contract, the Council shall seek reports and

explanations from the suppliers or their agents and may institute liquidated

damages as may be provided for in the contract. Goods rejected shall be collected by

the supplier from the premises of the Procuring Entity within seven (7) working

days from the date of rejection of the goods.

Pre-Shipment Inspection

Pre-shipment inspection of goods is required for imports into Tanzania. It is also

essential for expensive imported goods and items likely to suffer damage or

deterioration during transit if not packed in accordance with the specifications in the


contract. The requirement of pre-shipment inspection of goods needs to be specified

in the contract.

The inspection will normally be undertaken by a nominated international third-

party agent for imported goods. The inspector (who must be experienced and

appropriately skilled) will carry out tests – on a random sampling basis where

appropriate - to ensure that the goods and packing are in strict conformity with the

requirements.

Payment of Goods

The report on the receipt and acceptance of goods, which are delivered against

contracts, constitute the basis to commence the payment process.

For payments against invoices, the Procurement Management Unit will complete a

payment request ensuring the deduction of any advance payments already made,

any contractual penalties incurred by the Supplier and forward to the Finance

Department for processing with the following supporting documents attached:

Original invoice from the supplier;

The shipping documents, airway bill or a delivery note;

Original of the inspection report;

Original Goods Receipt Note;

Results of any laboratory analysis;

Calculation of any penalties if allowable under the contract; and

Copies of relevant information from the contract document and records of

approval;

The PMU will record the payment in the contract register and on expiry of any

guarantee period release the balance to the Supplier.

12.2 Contract Management of Works

Contract supervision and administration of works contracts is often more complex

than for goods due to the variety of factors which cannot always foreseen at the start

of the works. The use of Supervising Engineers and Project Managers means that

daily control and supervision is done by the User Department, which must ensure to

inform the Council is kept informed of progress and problems which arise through

inspection and supervision reports.


12.2.1 Contract Supervision

Works supervision services is carried out by the Council Engineer, registered

consultancy firms or any registered individual consultant who may conclude a

contract with the client. They act on behalf of the Council to supervise and

administer the contract. For large contracts this may involve a team of engineers,

inspectors, quantity surveyors etc.

Claims by Contractors for additional work or costs which are not covered under the

terms of the existing contract and total contract value, must be referred to the Tender

Committee for approval. Claims for extension of time, with or without additional

costs, or for additional payment to the contractor must be resolved quickly, subject

to the approval of the Accounting Officer.

The Supervising Engineer / Project Manager usually acts at the first level in

settlement of disputes and he should ensure that the Council is informed of any

disputes and their resolution. Any serious disputes which may require an

amendment or addendum to the original contract must be reported to the Tender

Board for review and approval.

12.2.2 Payment for Works

Payment for works contracts will normally be made against Payment Certificates

approved by the supervising engineer. For all works contracts, materials delivered to

the site but not yet used will be excluded from the works measurement approved

and the value of Payment Certificates. Supervision and approval of the handing-over

of buildings and construction works is the responsibility of the Council for which the

issuance of a Certificate of Completion is required before payments due to the

Contractor may be made.

The Supervising Engineer will ensure that:

Any required retention specified under the contract is deducted from the

value of the certificate before payment;

Agreed deductions in respect of the repayment schedule for any advance

payment are deducted from the value of the certificate before payment;

On issue of an interim takeover certificate, part of any retention monies held

may be paid to the contractor if specified in the contract; and

On issue of a final takeover certificate, the balance of any retention monies is

paid to the contractor.


The supervising Technical Department (or in its absence the PMU) shall complete

the financial statement ensuring the deduction of repayments for any advance

payment, retention sums and penalties incurred by the Contractor and forward the

approved payment with supporting documents to the Finance Department:

Payment Certificate;

Report for interim or final takeover (if appropriate);

Calculations of any retentions, liquidated damages or other penalties

applicable under the contract;

Copies of relevant information from the contract document, records of

approval and financial authorizations;

Record the payment in the contracts register; and

12.3 Contract Management for Consultancy and Non-Consultancy Services

Contract supervision and administration for routine services such as office cleaning,

provision of transport or contract maintenance, will be undertaken by the User

Department and the Procurement Management Unit as appropriate. The contract

may specify payments on the basis of inputs (time), deliverables, retainers, unit rates

or commission fees, and administrative and supervision activities must therefore be

based on the specific terms of each contract.

For consultancy services, the Council will usually nominate a Project Manager to

coordinate supervision and administration and responsible for:

Monitor the activity and performance in accordance with the contract to

ensure that levels of service are maintained and that deliverables are

submitted or completed on time.

For consultancy services, the contract may specify key reports to be

submitted, or timesheets and routine reports to be submitted on a monthly or

quarterly basis;

Ensure that all contractual obligations of the Council are performed promptly

and efficiently;

Ensure that all deliverables (and especially reports) are reviewed immediately

and responded to in writing where necessary;

Contact the Service Provider to identify the causes of any failings in

performance or failure to meet targets;

Issue a formal letter to the Service Provider detailing the complaint if the

explanation given is unsatisfactory or if performance is not improved within a

reasonable period of time; and


Report to the Tender Board any continued breach by the Service Provider of

his contractual obligations.

12.3.1 Payment for Services

Payment for service contracts will be made according to the specific terms of each

contract against invoiced claims by the Service Provider. The Procurement

Management Unit and Project Manager will ensure that:

The invoice claim is justified by the evidence of timesheets, submission and

acceptance of deliverables, or other criteria as specified in the contract;

Agreed deductions in respect of the repayment schedule for any advance

payment are deducted from the value of the invoice before payment;

Any retention sum specified in the contract is deducted from the value of the

invoice before payment.

The Procurement Management Unit and Project Manager will complete the payment

request ensuring the deduction of repayments for any advance payment, retentions

or penalties specified in the contract and forward the payment request and

supporting documents to the Finance Department, including:

The invoice;

Calculations of any retentions, liquidated damages or other penalties

applicable under the contract;

Copies of relevant information from the contract document, records of

approval and financial authorizations.

The PMU will record the payment in the Contracts Register of the Council.

12.4 Contract Performance

Monitoring Obligations of Consultants, Suppliers or Contractors

The performance of Consultants, Suppliers and Contractor against the contract must

be monitored on a routine basis. The Procurement Management Unit or Project

Manager will:

Notify the Service Provider immediately in writing of any failings in

performance and seek an agreed solution;

In the case of a consultant this takes the form of comments on consultancy

reports;


Update the contract file and Contract Register regularly to reflect the

monitoring of performance; and

Ensure that the Tender Boards is informed of any serious failings in

performance.

Monitoring Obligations of the Council

The contract may impose certain conditions on the Council which, if not complied

with, may affect the Supplier or Contractor’s performance including:

Payment of stage payments within the contracted time limits;

Assistance with import licences, exemptions, etc.;

Approval of drawings or reports within the set time periods;

Provision of storage or working facilities and access permits;

Conditions relating to the supplier’s provision of staff services (e.g. letters of

invitation for visas, provision of office space, etc.); and

Ensure that all such obligations of the Procuring Entity are planned and

performed without undue delay.

Delays in Performance

Delivery and performance of services should be completed in accordance with the

time schedule prescribed in the Schedule of Requirements. Where delays occur in

terms of the contract conditions:

The Service Provider must notify the Council in writing of the conditions

delaying performance, including full details of the delay, the likely duration

and the cause(s);

The Council will assess the situation, and may at its discretion extend the time

for performance, with or without liquidated damages as specified in the

Contract;

If the time for performance is extended, both parties shall ratify such

extension by a formal addendum to the Contract as approved by the Tender

Board;

A delay in the performance of his obligations may render him liable to

liquidated damages if specified in the contract document, except where the

delay is as a result of Force Majeure; and

If there is no provision for liquidated damages in the contract, an extension of

time is agreed between the two parties without the application of liquidated

damages.


The Procurement Management Unit or Project Manager will:

Refer to the relevant clauses in the General or Special Conditions of Contract

for the procedure to be followed to apply, calculate and claim liquidated

damages;

Update the Procurement Dossier and Contract Register to reflect any delays

in the supplier’s performance; and

Notify the end-User Department immediately of all such delays.

12.5 Resolution of Disputes

Most minor disputes may be resolved by sensible discussion and agreement between

the responsible officer and the Supplier or Contractor to rectify the cause of

complaint.

Any formal written complaints received from a Supplier or Contractor should be

fully investigated and referred to the Accounting Officer to authorise

correspondence or formal negotiations with the Supplier or Contractor. In this case

the Procurement Management Unit will:

Examine the Contract carefully to be aware of all contract conditions relating

to the Resolution of Disputes;

Determine if the Council is at fault or partly at fault, and if so, take

appropriate action to rectify the problem;

Invite the Supplier or Contractor to a formal meeting to discuss the issues and

try to agree a compromise acceptable to both parties;

Ensure that accurate written Minutes are kept of any such meeting;

If an agreement is reached which changes any of the conditions of the

Contract, the PMU shall consider and recommend and the Tender Board shall

approve before the agreement can be implemented;

If no initial agreement is reached and negotiations conducted by the

Accounting also fail, consider the use of conciliation or arbitration services as

specified in the contract;

Prepare any necessary addendum to the Contract for signature; and

On contracts funded by a donor, ensure that the donor is kept informed of

disputes and seek advice, and a formal “no objection” where required, before

any contract addendum is signed.


12.6 Contract Amendment

Contract amendments may become necessary as a result of the application of price

variations specified in the contract, the resolution of disputes, additional or reduced

requirements by the Council, agreements to extend the time schedule, or from

accepted increases or decreases in prices. The contract may allow the Council to

modify contract values by a pre-determined percentage when this is in the public

interest and essential for the work of the Council.

All other amendments to costs, quantities, time-period and other terms and

conditions of the contract must be recommended by the PMU or Project manager

subject to approval by the Tender Board and confirmed in a formal contract

amendment or addendum. The Procurement Management Unit/Project Manager

will:

Identify and agree with the Supplier or Contractor the specific clauses in the

contract which need to be changed, and the new values or terms and

conditions which are to apply;

Prepare a draft contract amendment document for Tender Board for approval

together with a report justifying the reasons for the amendment;

Record any change in contract value and conditions in the Contract Register;

Obtain from the supplier/contractor any necessary addition to the

performance security; and

Distribute contract amendment copies in the same way as the original

contract.

12.7 Termination of Contract

The parties to the contract normally have the right to terminate the contract. In order

to protect the Council, advice of the Legal Department should always be sought if

the Council is considering such action. For donor funded procurements, donor “no

objection” must be sought before any action to terminate a contract is initiated.

Contracts should normally not be terminated without examining all possible

alternatives, unless the termination is agreed by all parties to the contract. Therefore,

examine the Contract carefully to be aware of all contract conditions and penalties

relating to the Termination of Contract. Secondly, it is important to follow the advice

of the Legal Department in the preparation of any correspondence and settlement of

any contractual penalties.


12.8 Contract Closure

Contract closure is concerned with completing and settling the terms of the contracts

of the project. It supports the project completion process because the contract closure

process determines if the work described in the contracts was completed accurately

and satisfactorily. Contract closure updates the project records, detailing the final

results of the work on the project. Contracts may have specific terms or conditions

for completion.

The contract closure is an administrative procedure, which is aimed at consolidating

that both parties (Contractor and Council) have fulfilled their contractual obligations

and there are no unexecuted tasks or other types of pending issues. The last stage of

the project procurement cycle includes the payment of the bills and closing of

procurement contracts. Suppliers provide commodities that should meet standards

of quality. The project team must check the records of deliveries made and

determine that they were acceptable quality. If any items were rejected for poor

quality or not delivered, the final payment is adjusted accordingly.

12.8.1 Actions for Contract Closure

During the contract closure procedure the Contract Supervisor should:

a) Check that all products have been delivered and accepted (case of supply

contract), all works have been completed and accepted (case of building

works or civil engineer's works), all services have been rendered and their

deliverables have been accepted (case of service contracts);

b) Check that the initiation and completion Reports (case of supply contracts) or

the interim and final Progress Reports (case of service or public works

contracts) have been submitted and have been accepted;

c) Check that all interim payments as well as the final payment have been

effected and that the Performance Guarantee has been returned to the

Contractor;

d) Check that all issues that resulted during the execution of the contract have

been dealt with and there are no open issues;

e) Ensure that all of the rights, including copyrights, and other intellectual and

industrial property rights that were ensured during the execution of the

contract are devolved to the ownership of the Council;

f) See to the return to the Council of its assets that were made available to the

Contractor in the context of execution of the contract and check that these

have not suffered damages. In the same context, he also handles issues of

equipment and license disposal (e.g., software) which were used by the

Contractor during the execution of the contract;


g) Check that all of the data like charts, diagrams, drawings, specifications,

plans, statistical data, calculations, operation and maintenance manuals

(service and public works contract) and any other relevant document or

material acquired, collected or drafted by the Contractor during the execution

of the contract have been submitted to the Council, otherwise sees to their

collection;

h) Complete the filing of the material related with the execution of the contract

like: Contractual documents, plans for the implementation of the contract

scope (activities schedule, resource plan, cost plan, risk management plan,

issue management plan, etc), communication and reporting plans,

deliverables, correspondence, requests for changes and claims, invoices,

payment receipts. All files are kept by the Council for as long as provisioned

in the section 61 of PPA of 2011 depending on the type of documents (e.g.,

accounting files and entries must be kept pursuant to the Accounting and

Fiscal Guidelines for a period of 5 years);

i) Submit as-built drawings for works contract;

j) Notify all stakeholders that the contract has been completed;

k) Release the resources (human resources, machinery, equipment, materials

and infrastructures) of the Council that were utilised in the execution of the

contract;

l) Provide the Contractor with a Good Performance Certificate as long as it is

requested by him;

m) See to the return to the Council of its assets that were made available to the

Contractor in the context of execution of the contract and check that these

have not suffered damages; and

n) In the same context, handles issues of equipment and license disposal (e.g.

software) which were used by the Contractor during the execution of the

contract.

It is the responsibility of the Council to ensure that the deliverables, goods or works

under a contract have been completed and the contract is ready for close-out prior to

final payment.

It is a good practice to use a checklist as a tool to assist the Council during the

closeout process (see Annex 5).


CHAPTER 13: PROCUREMENT REPORTING, RECORDS, MONITORING AND EVALUATION

___________________________________________________________________________

In accordance with section 9 of PPA of 2011 as Amended 2016, all public

procurement proceedings shall be subject to regular monitoring by the Public

Procurement Regulatory Authority to ensure compliance with the prevailing

Procurement legal framework. Besides its internal procurement reporting and

monitoring, every Council and anybody in charge of procurement contracts is

required to cooperate with PPRA in carrying out this mission.

13.1 Procurement Reporting

Routine reporting of procurement activities by all Procuring Entities including the

Councils is essential for procurement planning and budgeting, and for the

monitoring, tracking and evaluation of procurement by the Council. The Public

Procurement Regulations stipulate that monthly, quarterly and annual reports must

be submitted to the PPRA showing how the Annual Procurement Plan (and ad-hoc

procurement) is being implemented. The reports will provide the following

information:

Procurement which is in progress and at various steps of the procurement

cycle;

Procurement contracts signed and date signed during the period;

Procurements which have been cancelled, when they were cancelled and

reasons for cancellation;

Procurement Contracts completed and dates completed during the period

Procurements scheduled to have started but yet to commence; and

Procurement plan performance as indicated by procurements on schedule

versus the total procurements on the procurement plan.

13.2 Procurement Monitoring and Evaluation

Monitoring and evaluation of procurement compliance and performance is a process

that must be systematically and periodically conducted both by Procuring Entities

and the PPRA. The PPRA has introduced a checklist for all Procuring Entities that

acts as a monitoring tool to ensure that procurement processes are carried out

according to the standards derived from the procurement legislation. The

monitoring tool covers the following seven (7) main procurement indicators:

1) Institutional Set up and Performance;

2) Appropriate preparation and implementation of APP;


3) Appropriateness of the Tender Process;

4) Appropriateness of contract implementation;

5) Procurement Record Keeping;

6) Implementation of systems prepared by PPRA (PMIS/CMS); and

7) Handling of complaints.

PPRA regularly reviews the procurement procedures, systems, guidelines and

standard procurement documentation and makes recommendations for

improvement of the indicators.

13.3 Monitoring by the Council

The Procurement Management Unit in collaboration with User Departments are

required to submit monthly and quarterly procurement and contract execution

reports to the Council Management Team and Full Council. The reports are partly

informed by site meetings where required, as well as regular supervision and

inspection meetings by Council stakeholders.

Council’s monitoring of procurement is also done by the Internal Audit Unit. It is a

requirement that quarterly Internal Audit Reports are submitted to the National

Audit Office, Internal Auditor General (Ministry of Finance), Regional Secretariat as

well to PPRA on Council’s procurement. This has to be done within 14 days after the

same have been submitted to the Accounting Officer.

All reports to the PPRA from the PMU and IAU should be submitted

electronically by using the Procurement Management Information System;

Councils without adequate internet connectivity / facility are allowed to send

reports in hard copy.

If the PPRA finds any violation or issues, it shall require the Council Director to

submit more details of the procurement concerned (Reg PPR 86).

13.4 Communication and Information

All procurement correspondence and communications issued by the Council shall be

made by persons authorised in accordance with their duties and responsibilities. In

accordance with PPA of 2011 any communication between the Council and the

bidder shall be made in writing. Therefore it is important that such communication

is done after careful consideration to ensure that the Council is not unintentionally

or mistakenly legally bound which can result in unnecessary financial implications.


13.4.1 Procurement Management Information System

The Council is required to use the Procurement Management Information System

(PMIS), which is used by the PPRA in collecting, storing and sharing of procurement

information between the Authority and stakeholders of public procurement. The

following information shall be submitted in to PPRA as shown in the table below:

Table 13.1: Required Information and Timeline for Submission to PPRA

S/n Required Information Timeline for Submission

1 Quarterly Internal Audit Report 14 days after its submission to the

Accounting Officer

2 Annual Procurement Plan Not later than 14 days after approval

in Council (by BAA)

3 Tender, Quotation and Request for Proposal

Invitation

7 days after the invitation

4 Monthly and Quarterly procurement

Implementation Report

7 days after the end of Month or

Quarter

5 Annual Procurement Implementation Reports 30 days after the F/Y end

6 Required Information Timeline for Submission

7 Award of Contract for Emergency

Procurement, Single Source or Direct

Contracting

7 days after the award

8 Name of Firm awarded contract and the

amount of tender

30 days after the award

9 Termination of Contract 14 days after the date of termination

10 Amendment or alteration to a contract 7 days after issuing the instruction to

amend

11 Decision on Complaints by Accounting Officer

of PE or by PPAA

14 days after issuing the decision.

This information is available for use by internal and external stakeholders of the

LGA procurement process.

13.5 Procurement Record Management

Documentary records both in print or electronic format are essential for efficient and

effective management of activities, provide evidence in support of decisions and

actions taken, and provide an audit trail for verification of transparency,

accountability and effectiveness. Efficient records management is essential to ensure

effective storage, retrieval and use with due regard to security, integrity and

confidentiality.


All Council officers shall ensure they obtain, retain and maintain appropriate

documentation supporting the activities for which they are responsible. Senior

officers involved in approval or authorisation shall ensure that any transactions they

approve or authorise are backed by appropriate supporting documentation.

The requirement of procurement record keeping is further emphasized by GN. 446-

R.10 (1) & (2) so as to ensure transparency and fairness, and GN.446-R.15 gives a list

of records that can be kept and how such records can be shared. These include

description of goods or services, the procurement process/method adopted, names

of all participating firms, the evaluation process and the contract award process.

In accordance with Public Procurement Act, the Council shall keep record of the

procurement proceedings containing the following information for a minimum

period of five (5) years from the period of the award of tender. Section 61 of PPA

2011 requires a PE to maintain records of procurement contracts for a period of not

less than five years from the date of completion of the contract.

The kept records must be made available when required by the Minister of Finance

and CAG.

13.5.1 Record Management System

The Procurement Management Unit has the general responsibility for maintaining

procurement documents. To this effect each Council must ensure that complete

documentation is maintained in respect of all procurement activities and for

contracts and agreements entered into. The responsibility for the official

maintenance of procurement files, records and authority to access files and

coordination of management and follow-up actions must be clearly defined in each

Council to avoid:

Partial and incomplete records being held by several different departments

and individuals;

Unauthorised access to records; or

Failure to take any necessary action at the right time.

For the purpose of keeping procurement and contract management records, a

Procuring Entity is required to open a procurement file and a contract file

respectively, each with unique file number; and

The PPRA has issues a guide on numbering on tenders which is accessible on

the website of the Authority.


The procurement file is important in the management of a procurement contract.

The file is opened by the PMU for the purpose of processing and tracking

procurement when an individual procurement commences. It contains the following:

Procurement initiation requisition;

All correspondence on the procurement;

Bid document;

Bids received;

Bid opening, evaluation and tender award notification;

Information on the award of the contract and particulars of the contract.

Contract concluded between the Procuring Entity and the bidder;

All correspondences between the Procuring Entity and the bidder; and

Any other useful information, instructions and reports that are related to the

tender

Archived public procurement documents may be consulted from where they are

kept by any authorized person.

The contract file shall be opened by the contract manager after the procurement

contract is signed. The file shall be used for recording the actual performance of the

requirements indicated in the contract. The file should contain the following:

Signed original procurement contract;

Any signed modifications to the contract;

Contract correspondence between the parties;

Information on the performance;

Correspondence on the contract;

Management progress reports;

Minutes of meetings of project team;

Payment records and close up documents;

Copy of performance security (where required); and

Any other relevant information.

PPRA has prepared a guide of records to be maintained in the procurement and

contract file as shown in Table 13.2 below:


Table 13.2: Records to be included in Procurement and Contract Files

Procurement Records as per PPA and Regulations

S/n Record

A: RECORDS TO BE MAINTAINED IN PROCUREMENT FILE

1. Copy of Annual Procurement Plan

2. Minutes of Management Meeting which approved the Procurement Plan

3. Requisition of Procurement to initiate Process;

4. Approval of Procurement Method

5. Minutes of TB Meeting that approved tender advert, bidding documents (advert/

specifications/TOR/ Statement of Requirements);

6. Copy of Adverts/Invitation for Tenders/Quotations where non- open method

was employed

7. Tender Document/ RFP issued to Bidders (if any);

8. Clarifications received & Issued to Bidders (if any);

9. Minutes of Pre-bid meeting (if any);

10. Amendments/addendum to Bidding Document/RFP issued to bidders (if any)

including Notice of Extension of time for submission of bids (if any);

11. Minutes of Tender Opening;

12. Tenders submitted

13. Letter of appointment of Evaluation Committee;

14. Evaluation report with all the necessary attachments, particularly all

correspondences with bidders regarding notification of arithmetic errors and

acceptance of the same

15. Deficiencies noted by Procurement Unit while reviewing the evaluation report and

correspondence with the Evaluation Committee on the same

16. Any Declaration of Interest by members of Tender Committee before adjudicating

on a particular tender;

17. Deficiencies noted by the Tender Committee while adjudicating on the Tender and

their directives to Procurement Unit on the same;

18. Minutes of the Tender Committee that approved recommendations of award;

19. Letter of appointment of negotiation team (if any);

20. Approval of negotiation plan;

21. Letter inviting firm to negotiate (letter of intent);

22. Minutes of Negotiation

23. Approval of contract award recommendation

24. Letter of Intent to award

25. Report on any complaints received from the bidders;

26. Letter of award/Letter of Acceptance;

27. Letter of Notification of Unsuccessful bidders;

B: RECORDS TO BE MAINTAINED IN THE CONTRACT FILE

28. Contract documents

29. Approval of Contract documents

30. Approval of contract amendments (if any);


Procurement Records as per PPA and Regulations

S/n Record

31. Copy of performance guarantee where applicable;

32. Copy of Signed Contract;

33. Copy of advance payment guarantee, where applicable

34. Records for site handover where applicable;

35. Notice to commence works/services where applicable;

36. Instructions or Formal Communications;

37. Approval for variation orders/ contract amendments where applicable;

38. Variation orders/change order;

39. Progress reports, where applicable;

40. Letter of appointment of Inspection and Acceptance Committees for Goods

41. Inspection and Acceptance Committee report;

42. Certificates/Delivery Reports/ Goods Receiving Notes;

43. Payment Certificates (Buildings and Civil Works) to be accompanied by testing

results & measurement sheets where applicable;

44. Letter of Credit/Invoices/ Payment Vouchers (for goods);

45. Claims submitted by the supplier, Contractor, consultant or Service Provider

46. Claim Valuation Reports

47. Disputes (if any) and how they were handled – Records of settlement proceedings

48. Snag list (list of defect works0 to be corrected during defect liability period, if any

49. Final Inspection and Handover Report;

50. Final Account and Contract Closure Report


ANNEXES

___________________________________________________________________________


Annex 1: Procedural Forms, Standard Bidding and Contract Documents

List of Procedural Forms (for Downloads)

http://www.ppra.go.tz/index.php/component/phocadownload/category/51-ProceduralFormsEnglish

1. Letter for appointment of Tender Board Chairperson/Members/Secretary.

2. Procurement requisition - submission to procurement management unit (PMU).

3. Request for approval of procurement/selection method - submission to Tender

Board.

4. Request for approval of pre-qualification document/expression of interest and

notice - submission to Tender Board.

5. Request for approval of bidding document/request for proposal and bid

notice/shortlist - submission to Tender Board.

6. Request for approval of addendum to bidding document/request for proposal -

submission to Tender Board.

7. Minutes of pre-bid meeting.

8. Record of receipt of bids.

9. Record of Bid/Proposal Opening.

10. Membership of evaluation committee - submission to Accounting Officer.

11. Request for approval of evaluation report and recommendations - submission to

Tender Board.

12. Membership of negotiation team - submission to Tender Board.

13. Request for approval of negotiation plan- submission to Tender Board.

14. Record of negotiations.

15. Request for approval of negotiations - submission to Tender Board.

16. Request for approval of contract award recommendations - submission to Tender

Board.

17. Request for approval of contract amendments - submission to Tender Board.

Consult: http://www.ppra.go.tz

http://www.ppra.go.tz/


Annex 2: Bid Receipt Form

BID RECEIPT FORM

1. Date: ……………………………………………………………………………………

2. Time: ………………………………………………………………………………….

3. Tender No:

4. Council stamp (and officer’s names and signature):

Bidder’s/Representative’s names and signature:……......................................................................................................................................................................................................................................................


Annex 2: Letter for Appointment of Contract Supervisor

HALMASHAURI YA WILAYA YA ABC

(Barua zote ziandikwe kwa Mkurugenzi Mtendaji Wilaya)

Unapojibu tafadhali taja:

Kumb. Na. XXX/C/B/85/VOL.II/

10/05/2016

Ndugu,

Jina…………………..

Cheo…………………

S.L.P XXX

WILAYA.

YAH: KUTEULIWA KUSIMAMIA MRADI WA MATENGENEZO YA

UJENZI/UKARABATI WA ……………………………………….

Tafadhali husika na kichwa cha habari hapo juu.

Nimekuteua kusimamia mradi wa Matengenezo ya (Mara kwa mara,sehemu korofi,Muda

maalumu). Barabara ya ……………………………………………………………………

Ambao utafanya na Mkandarasi M/S……………………………, ambao utaanza tarehe

……………… hadi tarehe ………………..

Majukumu yako ni kama ifuatavyo.

(i). Kusimamia kwa karibu mradi huu kwa kufuata taratibu za mikataba.

(ii). Kusimamia ubora wa viwango kazi vinavyokubalika kwa mujibu wa mkataba.

(iii). Kusimamia utekelezaji wa mradi kwa kufuata mpango kazi “Work programme” ya

Mkandarasi kama zipo dalili za kutotekelezeka mpango kazi.

(iv). Kuandaa malipo kulingana na kazi zilizokamilika na zinazostahili kulipwa kwa uhalisia

na sio kufuata’ BOQ’ lipa “actual works”

(v). Kuandaa vikao vya maeneo ya kazi “site meeting” zitakazo wahusisha, Mwajiri, PMU,

Simu Na XXX Faksi Na. XXX

S.L.P XXX,

WILAYA,

MKOA.

<<< NEMBO>>>


Viongozi wa serikali za vijiji/kata waliopo karibu na eneo la mradi pamoja na

Mkandarasi kila mwezi.

(vi). Kusimamia upimaji na ubora wa kazi inavyofanywa na Mkandarasi ukishirikiana na

TANROADS.

(vii). Kushirikisha Wananchi walio karibu na eneo la mradi katika utekelezaji wa mradi ikiwa

Ni pamoja na kuwapa taarifa juu ya maendeleo ya mradi.

(viii). Kumsimamia mkandarasi kuhusu masuala mtambuka katika eneo la mradi huu ikiwa ni

Pamoja na ushiriki wa sawa wa kijinsia (wanawake na wanaume) katika kuajiri vibarua,

Ugawaji wa vipeperushi na “condom” katika maeneo ya mradi ili kupunguza

maambukizi ya VVU.

(ix). Kusimamia kwa karibu rasilimali zilizopo barabarani (existing road structure and

Furnitures) ili zisiharibiwe wakati wa utekelezaji wa mradi huu ili kupunguza gharama

Za kurudia kazi.

(x). Kumshauri Mhandisi wa ujenzi pale inapobidi juu ya kuongeza na kupunguza kazi

Kulingana na mkataba.

(xi). Kutoa mapendekezo kwa maandishi na vitendo juu ya Wananchi wanaofanya shughuli

Zozote katika eneo la barabara (yaani, umbali usiozidi mita 15 kila upande wa

barabara).

Hakikisha unatekeleza majukumu yote hayo kwa umakini na kuhakikisha utekelezaji wa

mradi huu unakamilika kama ulivyo katika mkataba. Iwapo mradi huu utatekelezwa chini ya

kiwango utawajibishwa kwa mujibu wa sheria na taratibu za kiutumishi.

Nakutakia kazi njema.

XXXXX

MKURUGENZI MTENDAJI (W)

WILAYA.

Nakala 1. Mhandisi wa Ujenzi (W)

2. Afisa Ugavi (W)


Annex 3: Request for Approval of Contract Amendment

[For Submission to Tender Board]

Name of the Procuring Entity: [insert name of Procuring Entity (PE)]

Tender ID No.: [Insert tender identification number]

Subject of Procurement: [insert subject of procurement]

Method of Procurement: [insert method of procurement]

SUBMISSION INFORMATION

1. How many times (if any) has the contract been amended?

2. Insert:

Original contract value

Total value of any previous amendments (+ /- currency and

amount)

percentage of original contract value

3. Describe proposed amendment to contract

4. Reason for amendment of contract

5.

Insert:

Value of proposed contract amendment

(+/- currency and amount)

percentage of original contract value

6. Any other relevant information

Documents attached: (list any other documents attached)

Draft Contract Amendment

Related Documents Submitted previously: (available for reference from Secretary to

Tender Board)

Contract Document and all previous amendments

Previous Submission:

(Section letter and title)

Date

Approved:


The Tender Board [insert either “has” or “has not”] approved Contract amendment

number [insert number of amendment] amounting to [insert currency and amount of the

proposed contract amendment] to an amended Contract value of [insert amended

Contract value in currency and amount].

The information contained in this form and the attached documents is complete, true

and accurate and in accordance with the Public Procurement Act No. 7 of 2011, it’s

Regulations and funds available for this contract amendment:

Secretary of the Tender Board

Chairperson of the Tender Board

Signature: Signature:

Name: Name:

Date: Date:


Annex 4: Sample Contract Completion Statement

1. Contract Administration Office*

(* only if different from the contracting office, below)

Complete Name & Address

2. Contracting Office

Complete Name & Address

3. Contract Number

4. Last Modification Number

5. Last Call or Order Number

6. Contractor Name and Address

Complete Name & Address TIN:

7. Dollar Amount of Excess Funds

8. Voucher No. & Date (Cost Re-imbursement Contract)

9. a. Final Invoice Number

(Fixed Price Contract)

9. b. Final Invoice Date

10. All contract administration functions have been fully and satisfactorily completed. As a result of a final review of the contract file, it is determined that, to the best of my knowledge,

all terms and conditions of the subject contract have been met and the file so documented. The checklist has been completed indicating that all requested deliverables, as modified, have been received and are acceptable, and all services have been satisfactorily performed. Actions relating to the settlement and to the disposition of the Government property have been documented. The final invoice has been received and processed, giving consideration for any adjustments, which may be necessary as a result of the above. Consequently, all necessary actions required to close the subject contract are hereby considered complete as evidenced by the closeout checklist contained in this file.

___________________________________________ _____________________ Signature Date Contracting Officer ___________________________________________ ____________________________________ Type or Print Name Email Address


Annex 5. Checklist for Contract Closure

Contractor Name Contract Number Project Completion Date

Person Completing Checklist

Project Title/Name

Task Date Completed NA Task

ADMINISTRATIVE ISSUES

Contract administration files are consolidated and turned over to PMU upon completion of the closeout process

The central file is complete, organized and conforms to regulations governing contract administration as specified by the PPA of 2011. [Reference Formal Contract Administration File].

The Contractor has notified the Council that all work required by the contract is complete

The Contractor has complied with all contractual terms and Conditions

All file documents have been signed with the original signatures. This include invoices, /vouchers, letters to contractor, memoranda, official correspondence etc.

All final determination have been completed All optional provisions have expired

All time extensions have expired All change orders, modifications, have been signed, defined and included in the central file

Settlement of subcontract by the prime contractor completed

MONITORING

All monitoring issues have been resolved The monitoring plan updated and documentation of all monitoring requirements accurately reflects the status of all monitoring activities as outlined in the monitoring plan.

The Risk Assessment is updated and completed to reflect the status of all monitoring activity

All Council specific required approvals have been received

The Contractor has complied with all contractual terms and conditions

DELIVERABLES

All Contract deliverables have been received, inspected, and accepted including All required reports




Project Title/Name


FINAL PROPERTY CLOSE OUT

The property inventory report has been received from the contractor

All Council –owned property, real or person, either furnished by the government or acquired by the contractor for the account of the Government has been accounted for

All property inventory and ownership issues are resolved including disposition of any equipment, licenses purchased, or warranty information under the contract.

FINAL SECURITY CLOSE OUT (IF APPLICABLE)

There has been a Disposition of all Classified Material (Proprietary, Trade secrets, Sensitive, Confidential, Personal /Privacy) generated to or accessed by the contractor in the performance of the contract.

FINAL PATENTS CLOSEOUT (IF APPLICABLE)

Final New Technology disclosure report received

Final invention, patents, and copyright disclosure reports received

Report affirming that no technology, inventions, patients or copyrights resulted from the contract

FINAL ROYALTY REPORT CLOSEOUT (IF APPLICABLE)

Final Royalty Report has been received

FINAL PAYMENTS AND INVOICES

All disallowed payments, performance, deliverables, or suspended costs been resolved.

All reconciliation has been completed in conjunction with a financial report to verify that all payments have been paid

Refunds, rebates, and/or credits have been annotated in the file

The contract file contains a record of all payments made to the contractor.

All excess funds, such as un-liquidated obligations have been verified and the de-obligations of funds have been accomplished, if required?




Project Title/Name


Final invoice has been received, reviewed, accepted and paid.

CONTRACT COMPLETION STATEMENT

After final acceptance and final payment has been made, a Contract Completion Statement is prepared and issued officially stating that the contract is complete in its entirety and may be closed and properly archived.

CONTRACTOR’S PERFORMANCE REPORT

A contractors Performance Report has been prepared

CONTRACT ADMINISTRATION ANALYSIS OR POST CONTRACT

EVALUATION

The contractor and end-user has completed a contract analysis report card


Annex 6. Changes as per Public Procurement (Amendment) Act of 2016

S/n Change / Issue Particular of Amendment

1. General

Improvements

Prudent use of market prices

Reducing procurement process / transaction costs

Increasing opportunity for participation of special social groups e.g.

women, youth, elderly, people with disabilities

Promotion of industrial development using locally produced raw

materials, products and services

Establishing and adopting government approved standards

Making special procedures for commercial oriented entities to

procure inputs of production, etc

2 Specific Issues

(PPRA related)

PPRA in collaboration with AGO & Professional Bodies preparing,

updating and issuing of authorized versions of standard Bidding

Documents and other documents

PPRA to build capacity of stakeholders involved in public

procurement

PPRA to obtain price information for standardized common items

and services from relevant public bodies

Under Sect. 10(3) PPRA may order suspension of

proceedings/implementation of any matter under investigation

3 Powers of PPRA Section 18(1): Powers of the authority

(e) excludes “tenderers” because of complaints review mechanism

already in place

Section 23(2): Appointment of the CEO (of PPRA) need not be

“registered” for professionals as there are other professions without

registration

4 Functions of AO Section 36: Functions of the AO

(l): emphasizes on submitting “details” and not just a list of

procurement contracts awarded and Annual Procurement

Plan (APP) for the next Financial Year (FY)

(n): emphasizes on the use of Procurement Management

Information System (PMIS) and e-procurement

5 Witnessing on

Contract Signing

New section 46A: Witnessing on contract signing

As per the law or legal instrument establishing the Procuring

Entity (PE) , or where not available any person enumerated under the

Notaries Public and Commissioner for Oaths Act

6 Removal of

“Closed”

Framework

Agreements

Section 50(1): Removal of “closed” framework agreements within

the procurement of Common Used Items and Services (CUIS )

(3): Open framework agreement contains specific terms and

conditions but does not contain agreed price

New sections 55A-55D: Local content

Emphasis on local firms with 100% local ownership

7 Cool off Period

Reduced to 7

Working Days

Section 60

(3): Cool off period reduced to 7 days

Contract is formed when a written acceptance is communicated to

the successful tenderer



8 Procurement

Contract Entering

Into Force

(10): A procurement contract “enters into force” when the formal

contract is signed by parties to the contract

9 Selection of

Procurement

Methods

Section 64: Selection of methods of procurement

(2)(c): Includes special groups, e.g. Women, youth, elderly, and

persons with disability

Instead of “restricting the issue of tenders”

PE’s to set aside a specific percentage of the procurement volume to

special groups

10 Procuring directly

from

Manufacturers,

Dealers,

Wholesalers or

Service Providers

Section 65A: Procuring directly from manufacturers, dealers,

wholesalers or service providers

Certain goods and services

Procedure to be prescribed in Regulations

11 Emergency

Procurement

Section 65: Emergency procurement

(1)-(2): Emphasis on “emergency “and not “urgent”

Former subsection (3) and (4) deleted: GPSA no longer involved in

approving emergency procurement

12 Established and

Approved

Standards of Items

or Services to be

Procured for

Government Use

Section 65B: Established and approved standards of items or

services to be procured for Government use:

Standards to be issued by relevant Government organs

Manner to be prescribed in Regulations

Certain goods for Government use may not need approved

procurement standards

13 Fraud, Corruption

and Debarment

Section 83: Fraud, corruption and debarment

(2): PE is expected to conduct due diligence and not investigation;

Can only declare a bidder ineligible

Corrupt practices can only be established by court of law and not by

a PE

Emphasizes that debarment can only be declared by the Authority

and not by a PE

14 Establishment of

Appeals Authority

Section 88: Establishment of Appeals Authority

(4): Deleted; to enhance good governance and avoid dual role

within the institutional framework

Dual roles: resolving disputes and complaints while also serving as

governing board (budget approving authority)

Section 89: Appointment of Executive Secretary

(3): Executive Secretary will not be supervised or directed by

Appeals Authority

Section 91: Funds of the Appeals Authority

(3): deleted as the Appeals Authority is no longer a governing board

for approving banks for its accounts

Section 93: Annual Management Plan and Budget

The authority for approval is now the PS of the ministry responsible

for finance, and not the members of PPAA



15 Right to Review Section 96: Settlement of complaints/disputes by AO

(4): Bidder given 14 days instead of 28 days

(6): AO given 7 days instead of 14 days

Section 97: Review by Appeals Authority

(2): Bidder given 7 days instead of 14 days (after AO decision or

expiry of time given to AO without decision)

(3): Bidder given 7 days instead of 14 days (for contract already

in force)

(5): More remedies:

(g) Compensation to PE for costs incurred if it wins the case;

(h) Set aside, vary or confirm decision by PPRA to blacklist;

(i) Any other order or relief as it may deem fit to grant

16 Review

Proceedings and

Judicial Review

Section 99: Certain rules applicable to review proceedings (1) & (2):

deleted to reduce time and cost of occasioned complaints by

unsuccessful bidders Section 101: Judicial review

(2)(b): A tenderer who is a public institution or a PE challenging

the decision of the Appeals Authority: To state their positions to

the AG immediately after the leave has been granted by the High

Court

(3): AG to state case containing positions of both parties and file

a case marked “Case Stated” to the High Court for opinion.

17 E-procurement New Section 63: e-procurement

(1): Emphasis on the use of e-procurement including PMIS by PEs;

Manual procedures only where electronic facility is not available